Welcome new and current subscribers,
Recap- Last week we warned about the hidden seller at $4140 and firmly stated, “no longs from our camp.” Snippet below.
Growth is a choice- One of the many things that I used to struggle with was executing on my own trade ideas. Take this week for example: clearly no longs below $4140, but somewhere between my trade idea and execution comes a random variable… a popular Furu with 200K followers, whom I respect, sends out a tweet to go long at $4140 to target $4200. The old me would have ended the week frustrated because I would have valued his opinion (and blindly bought $4140) more than I did my own.
1 Corinthians 3:9-10- “For we are God’s coworkers and you are God’s building. According to God’s grace that was given to me, I have laid a foundation as a skilled master builder, and another builds on it. But each one is to be careful how he builds on it.” Don’t be disappointed if you have just began laying down your first brick while your peers are almost done building their mansions. All that matters is you started building with the right foundation. “That foundation is Jesus Christ.” (1 Cor. 3:11).
You hold the keys to your dream home, not your next-door neighbor- We all have goals and aspirations, like to build a dream home with a spacious backyard or to become a successful trader. But, somewhere along the path we start to depend solely on someone else to help us achieve our dreams. If you want to build your dream home, you must be the main builder.
DXY divergence call- We think the market will re-test these lower levels sooner rather than later, and once this happens, the manipulators will want the dollar to appear weak. Why? Investors are already catching on to the 2% inflation lies. If inflation is here to stay (elevated above 4-5%), troubled by a deteriorating dollar, this scenario will force investors to spend their “hot cash” as the market falls into value prices like $3600. This will be the ultimate trap that will cause the limit down, IMO. Here are some questions that raise potential red flags:
Why is the $5T sidelined cash information made available to me when the market is trading above $4000 vs. back in October when we were trading at $3500?
If/when the $5T cash buys the dip (unwillingly), who are they going to make money from? Is there a fairytale scenario where $5T buys and $5T wins?
If the dollar is trading near its highs, what is the incentive to buy vs. to wait if/when we trade into the October lows?
Look, we may be wrong and that’s okay. When the time comes and the narrative calls for a pivot, we will be the first to flip on a dime.
Magic Mike or Magic Musk- There’s one important number going into CPI day, and that number was given to us from the man himself, Elon Musk. Is it the obvious SPY $420? We believe it may relate to ES/SPX… Find out below.
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