NDX Bottom short has come!
Whenever initiating a TOP SHORT in an established uptrend, the likelihood that it keeps running is obviously high. That’s why you wait to add to the bottom CRACK! short. To give you a nice cost average. In this case, the price rose 9% addding now gives you a -4.5% drawdown Peanuts for a Macro short trade.
It is important to remember that the -4.5% drawdown applies to the entire position. However, the -9% draw down was only on half of the position. A much smaller amount, for example
An initial $5,000 Short position -10% = -$500
Adding the 2nd $5,000 for a total of $10,000 = $9,500
The -$500 loss is Peanuts! As a whole. More than acceptable.
Why implement this strategy?
It gives you some protection against a rapid downside move to hedge your portfolio or as a standalone trade, it gives you a nice cost average trade without guessing when should you add. It’s all right there on the screen, triggering trade signals on the fly.
On the flip side, if you wanted to Short wait for the bottom Crack, which is a much safer play.
Hence the title “Top Short! or.. Wait For Crack!”
Moving on, there is no more doubt or speculation as to the extent of Trump’s corruption in markets in this recent move up. The ethics filing shows the US president was extremely active in this recent move up. DUH!
All it takes is a couple of phone calls to Goldman Sachs, JPM, Blackrock etc.. for him to say DON’T SELL or I will come after you with the SEC, and that’s it. Simple. He has done it with collages, media, law firms etc… so its no big secret
The problem is he can’t do this forever. So be prepared when the rubber band snaps back to reality. It’s gona hurt!
As I have been warning GTFO and STFO! Cash is a position.
If you enjoy the work: 👉 Drop a solid comment. Let’s push it to 7,000 and keep building a community grounded in raw truth, not hype.