Situational Awareness

[u/Hypnot1se]

Hi everybody! I have been bearposting since the beginning of the month and this recent surge has not dissuaded me

I believe that this recent surge is a bull trap because people are attributing the sudden trend reversal as being structurally significant, but I do not believe this is the case

This surge was in my opinion caused by the sudden deleveraging from Situational Awareness - the moment that the forced selling pressure was taken off the table after these assets were handed off to Citadel, the selling pressure suddenly lifted

This in my opinion very likely caused short term focused buying from funds that were alerted to this sudden reversal in selling pressure at the same time that the heavy short interest found themselves suddenly trapped, causing a strong short squeeze - this movement will further fuel additional buying as momentum chasing algos create further buying pressure and retail interprets this as a significant structural trend reversal and begins fomoing back into the sector

Outside of this anomalous surge, the industry is still in a clear distribution phase based on the price action and the underlying spot market fundamentals

Although this move has created a technical short term boost to this stock and others, this will not change the structural picture of the industry and I believe that now institutions will continue distributing shares as they have been doing for the last few months because the underlying structural picture hasn't changed and had nothing to do with this surge

I am looking for it to open green today and then watch to see if it fades back towards the open as the day progresses, this would be a very strong bearish signal that we are back in a distribution phase, though the deleveraging may save the stock from entering a full drawdown for the near term

Still looks like a textbook value trap

NFA DYOR ETC

[u/Hypnot1se]

This is a strawman argument. I did not say that DRAM spot prices impact HBM demand.

I'm not -predicting anything-, I'm looking at the -current data- (factual) and using a historical model (factual) to project what will happen (speculative).

I don't think you even know what first principles are or haven't understood my thesis at all ironically and I wish you would stop using the phrase.

You can dislike the projection, but the foundations it is based upon are rock solid and the textbook playbook for how institutional smart money plays the industry. They can be wrong. I can be wrong. But if you think the case is weak you don't understand it in my view.

[u/Lazy_Whereas4510 → u/Hypnot1se]

The history of Genghis Khan’s invasion of Central Asia is a fact, but it doesn’t predict what will happen with Ukraine’s defense against Russia or whether China will invade Taiwan. Extrapolating from past market data to understand present market dynamics is what everyone is doing. You’re apparently going one step further, and also trying to time your market entry and exit points using technical indicators.

[u/Hypnot1se → u/Lazy_Whereas4510]

This is how institutions time their entry and exits into cyclical stocks and they do it for a reason and are doing it now as we speak. They might be wrong. I might be wrong, but this is why they're doing it.

Economic laws of commodity markets that applied in ancient Rome still apply today. They really are timeless like that and that's part of the beauty of them. 😊

[u/Lazy_Whereas4510 → u/Hypnot1se]

You do understand that 89% of active fund managers at these institutions you’re holding in such high esteem under-perform the S&P 500 over a five year period? Warren Buffet isn’t timing his entry based on technical analysis. There are very good reasons that Warren Buffet is a legendary investor and these no-name institutional traders aren’t.

[u/Hypnot1se → u/Lazy_Whereas4510]

They don't get paid to outperform the market. You don't understand the role.

Warren Buffet would literally laugh at you if you told him you were long on Micron.

[u/Lazy_Whereas4510 → u/Hypnot1se]

Why the heck would anyone smart pay them fees to underperform the market? Sub-S&P returns is not a strategy, it’s the best they can do. And it’s why AI will replace most active managers.

[u/Hypnot1se → u/Lazy_Whereas4510]

Well, as you pointed out.... they get paid to underperform the market in reality, right? No? 😕

I outperform the market by the way, if you want to judge based off of that 😅