Not Your Advisor
Not Your Advisor
Holy Friday and our Savior Jerome #169 (March 28)
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Holy Friday and our Savior Jerome #169 (March 28)

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This is a photo I took while on vacation in Milan of the original painting of the Last Supper by Leonardo da Vinci.

House Keeping

  1. Prices are going up Monday April 1. $260 Annual (70 cents per day) or $25/month (82 cents per day)

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Show Notes

Summary of the day

Breadth

  • 1,442 new highs

  • 89 new lows

  • 62% advancing 34% declining

  • 28% below 50 day ma

  • 29% below the 200 day ma

Stuck out

End of month end of qtr

Strong

Weak

What to watch

Watch mag 7

Watch yields

Economic data calendar

Trueup.io Tech #layoffs


Premium

Three Body Problem

The infamous three-body problem — a system of three bodies interacting gravitationally — is one of these cases; it represents one of the few areas of physics where it is taken to be true that a general, universalizable solution is impossible for us to grasp or is simply nonexistent. It is where chaos wins over order. (Source)

Our Three body problem:

  1. Hyper Debt and fiscal spending

  2. Hyper global polarization

  3. Demographics (boomers retiring)

Dates from peak to trough after kissing upper trendline on $SPX/VIX:

  1. Dot-com boom and bust

    Aug 24 2000 - July 29 2002 (23 months)

  2. Housing & Great Financial Crisis

    Dec 15 2006 - Nov 20 2008 (23 months)

  3. Everything Bubble, interrupted by Covid pandemic impulse.

    Dec 27 2017 - Mar 12 2020 (27 months)

    *$SPX/VIX reached 28.86

Where are we today?

How did SPX perform in those precise dates?

  1. Down 47%

  1. Down 51%

  1. Down 26%

The money supply since then has unabatedly exploded. The previous 3rd kiss draw down was not as bad as it could have been, thanks to the tremendous printing from Covid lockdowns. And my thesis is that the 4th kiss and draw down will be the largest ever, as the efficacy of more intervention will wane.

Paradoxically more intervention could cause hyper inflation and then deflation.

Hey, maybe AI can fix it all!


This content is for paid subscribers of Not Your Advisor x NYUGrad. Please forward selectively.

Disclaimer:

Trading is guaranteed to have both losses and gains.

In no way is any of my content, analysis and thinking a recommendation. After all it is titled “Not Your Advisor.”

Lastly, I am not a financial advisor. And I do not receive any compensation for securities mentioned. Full Disclaimer

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