Momentum Starts To Reverse

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Investors,

In last weekend’s premium report, I objectively analyzed the bullish and bearish case for the market after a historical rally. I made it clear that I leaned short-term bearish in this environment, but it’s critically important to evaluate the data & perspectives that are contrary to my own. With that said, I’ve put my money where my mouth is. On November 17th, I shared on Twitter that I entered a position in OILD 0.00%↑, the 3x leveraged inverse oil & gas production & exploration ETF. This position allows me to benefit in the event that the broader market declines & gives me specific exposure to bet against the oil & gas sector. Quite simply, there’s a massive divergence between energy stocks (red) vs. crude oil (blue):

By owning OILD, I’m betting that this gap will close because energy stocks are poised to fall towards crude oil prices. This is the largest trade that I’ve taken in 2022, but the position has generated a net return of +32% thus far. I plan to start taking gains on this position as early as this week upcoming, subject to change.

In the remainder of this report, I’ll dive deeper into the nuances within the market at the present moment and how the significant economic events for this upcoming week will impact the stock market and Bitcoin. The market will be facing significant risk events this week, which will drastically increase uncertainty in both directions. Let’s address how these events can unfold: