Mad October for stocks is over. Now fasten your seatbelts!
The anonymous trader, under the Twitter nickname: @shortl2021 One Bubble to Rule Them All gives his last minutue warnings to the upcoming market crash.
All what you can read in his bio is that he is CFA, former fund manager. Can’t resist getting back in the saddle for one last time to trade against this epic bubble. Not financial advice. #shortl
Sunday morning, and our trading veteran has struck again, this time targeting the Mad October for stocks. A Twitter posts by user @shortl2021, whose bio info states that he is a former fund manager details the latest market behavior:
As a veteran of markets, I thought I had seen it all: oil exploding amid the two 70s oil crises, the S&P falling 20% on Black Monday, Japan's bubble imploding after the Nikkei peaked on Christmas day 1989,
During the 1973 oil crisis, the Dutch government banned driving on Sundays, one of the factors which led to a major shift in transport policy in the 70s/80shttps://t.co/SoUWUg29Wt pic.twitter.com/VG56pIGQnY— Niamh McIntyre (@niamh_mcintyre) September 27, 2021
“Happy” anniversary ... on this day in 1987 (I remember it well ... had been in the business for 13 months at that point) Dow fell -22% in what is still worst ever single-day performance in 124-year history … Black Monday wiped out estimated $1.7T from global equity market pic.twitter.com/NxEahomGON— Liz Ann Sonders (@LizAnnSonders) October 19, 2020
Soros tipping sterling out of the ERM on Black Wednesday, the baht & rupiah imploding during the Asian crisis, the Russian crisis and LTCM, the dot com bubble burst, quant fund blow-up in August 2007, Lehman's collapse in September 2008, taper tantrum of 2013, Volmageddon of February 2018 and the Covid crash of February 2020.
The old adage is that markets go up on escalators and down in elevators, and what unites all the experiences above is that they are of the elevator ilk. Generally, rising markets don't have a day, week or month with which they are tagged.
They say the market takes the stairs up and the elevator down.— ⭐️ Real-Time Trading Ideas (@RTTradingIdeas) October 26, 2021
If this is "stairs up," I can only imagine what an "elevator down" will feel like.
Just saying..$SPY $SPX $ES #stocks #stockmarket #markets #trading #daytrading #investing #futures pic.twitter.com/5P8hLIz9jH
There is no 'Golden Friday'. But I will remember last week for a very long time. The rise in Tesla's stock was breathtaking: a 1 trillion dollar company acting like a penny stock.
Market Cap 10 Years Ago...— Charlie Bilello (@charliebilello) October 29, 2021
Bitcoin: $22 million
Tesla: $3 billion
Market Cap Today...
Bitcoin: $1.16 trillion
Tesla: $1.09 trillion
Tesla: 350x$BTC $TSLA
Charting via @ycharts pic.twitter.com/eVSn4QmllI
I've seen large caps levitate before. While trading Japanese equities, Softbank could produce some thrilling moves. But this is an order of magnitude more extreme. Softbank's moves were measured in the tens of billions, Tesla's jumps are in the hundreds. The one-week move in Tesla was equivalent to the combined market cap of the 3 largest UK companies: AstraZeneca, Uniliver & Shell.
Nasdaq, meanwhile, put on a mere 3.5% for the week. But this was against the backdrop of
⚠️BREAKING:— Investing.com (@Investingcom) October 28, 2021
*NASDAQ COMPOSITE INDEX HITS NEW RECORD HIGH pic.twitter.com/mgc44n7WaO
- Earnings guidance disappointment from Apple, Amazon & Facebook
- Rising US bond yields
- J-Powell's 1st admission that inflation is a problem
- US GDP growth disappointment
- Bank of Canada unexpected announcement of end of QE
- Short end jump in rates in EU & Aus suggesting early tightening
- Rapid rate hikes in Brazil & Russia
- Continued bad news out of China on property crash
- Weak growth data basically everywhere in the world
And yet US VIX remains on the floor!
Then we have the anecdotal stuff. Elon's TITS joke, Zuckerberg wanting to leave reality behind completely and migrate into the Matrix with Meta, Shiba Inu competing with Dogecoin to see who gets 1st to a market cap of $50 billion. WTF!
I am starting to question my own sanity. Am I dreaming this stuff up or is it really happening? If it is reality, then at least in my dotage I can say, "yes, I did witness Black Monday first hand, but it was nothing as mind-numbingly strange as Mad October".
An epic Stock Market CRASH is coming! ie 2008 style. Fed $ printing policy has created historic BUBBLE. Of $109 trillion of financial assets owned by US households a/o Q2 of ‘21 - 50 % is in STOCKS- a 70-year high. Biden will create PANIC when values drop 50%. Recession follows pic.twitter.com/TIalQ1BuqP— Richard Jimenez (@RichJimenez73) October 29, 2021