Staring Down the Abyss

assume crash positions

After months of crazy headlines and associated nonsense, I believe we are finally at the precipice of dramatic social and economic change. That’s not to say the process isn’t already underway, but my sense is that we are entering a much more acute, accelerated phase. Inflation rages and will get worse as we fail to address the root cause (printing money out of thin air coupled with unsustainable debt and deficits). The war in Ukraine continues to escalate as people slowly come to the realization the war is not about Ukraine, but rather about NATO and the US versus Russia, and even more broadly the BRIC nations versus the G7. Corruption domestically has reached insane levels, with a complicit media turning a blind eye. It has gotten so bad that the current administration has announced a Governing board to address “disinformation” under the Department of Homeland Security. Disinformation of course means anything that threatens the current regime. The proverbial Ministry of Truth and in a word, Psakian (Orwellian). So, it’s no surprise to anyone that I think we are headed to a failure of epic proportions. And it will not be short lived.

After initiating max shorts, a month or so ago at ES (snP 500 futures) 4500, NQ (Nasdaq futures) 14650, YM (Dow futures) 34,675, and RTY (small cap futures), we are currently at ES 4270, NQ13400, YM 33770, and RTY 1908 even after today’s desperate move higher for month end window dressing. Futures levels will not correspond exactly to the index cash levels (reported in the media). I am also long Gold, Silver, and Oil in anticipation of a drop in the dollar and continued currency manipulation coupled with geopolitical chaos.

My thoughts are that a waterfall collapse is imminent. We have much farther down to go.