27Jan9:52 amEST

Online Brokerage Firms to Retail This Morning: WHOOPSIE DAISY!

Just when the "little guy" on Wall Street was poking the bear (literally and figuratively) for the latest batch of legendary short squeezes in AMC GME and a whole host of other heavily-shorted stocks, a plethora of online brokerage firms have suddenly and coincidentally frozen up this morning off the opening bell in a "WHOOPSIE DAISY!" moment with all the sincerity of Bill the Butcher in Gangs of New York (2002). 

While the pomp and circumstance (or beer and circus) of the latest short squeezes have certainly captivated many people who otherwise do not spend much time thinking about markets, let alone actively trading them, we ought not lose sight of the big picture: What we are seeing now can be argued as the flip side of the Lehman-type of event often seen at the end of a bear market. Both bull and bear markets throughout history tend to end with :bangs: not whimpers, though there are exceptions. 

So what is changing now besides a garden-variety pullback off extended stock market indices amid frothy action?

Possibly the U.S. Dollar, as the Euro Zone discussed a currency war this morning amid everyone focusing on AMC and GME (by the way, Melvin capitulated and covered his GME short, a possible topping sign). 

If the Dollar, using the UUP ETF, below, confirms its inverse head and shoulders bullish bottoming formation, I am looking for a Dollar rally to get going and squeeze (there are record numbers of Dollar shorts right now) higher.

This should lead to a risk-off phase in markets, and possibly some dislocations, meaning volatility should spike up. 

It may not be the type of AMC or GME percentage moves, but if the Dollar does, in fact, squeeze imminently it may very well have much larger ramifications than any of the hot stocks du jour.  

Stock Market Recap 01/26/21 ... Stock Market Recap 01/27/21 ...


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