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Thursday, December 4, 2025

Stealth Rally Season:🚀 + K-Shaped Recovery = Code for “The Party’s Over


They’re admitting it everywhere now – even Europe’s central bankers are using the phrase [link kelo.com].

When Bloomberg, Beijing, and the ECB all start calling it a “K-shaped recovery,” translation: 99% of the real economy is dead – only the top branch still gets water.

So what happens next?
Desperate hedge funds and prop desks, starving for year-end P&L and terrified of redemptions, have gone full predator mode - hunting short sellers in every dark corner the headlines ignore. 

The $SPX can stay flat or red for months – doesn’t matter.
The most-shorted sectors and inverse ETFs are getting quietly exterminated so the quarter doesn’t end in a bloodbath.

  • Crypto flushed hard Monday → retest highs in 48h = 25-35% if you traded it like a pro
  • $IWC micro-caps +3% (the uglier the chart, the harder they squeeze)

  • Yesterday’s violent small-cap ramp (called live, 1 RT 🤡)
  • $LABD biotech bears took the volume bait → crushed




  • $SOXS semis inverse → Crushed on record selling volume during a holiday mind you 
 Classic quarter-end desperation, 2025 edition.What’s next? More of the same until 12/31.
Europe is next to fully admit the K-shape – Macron is literally in Beijing right now begging Xi to buy more overpriced Bordeaux and Airbus parts so France doesn’t implode first.
 
$EPV watching very closely (trade at your own risk after Japan’s +2.5% overnight pop).
  The same clowns who sold you “China fixed!” in March are now whispering it’s a corpse.
US “soft landing” dies the exact same way in 2026.
Take care into FOMC,  
AA
P.S. VIX signal from Nov 16 still live – sub-20 = green light (normal trading hours only). Black Friday proved why holidays don’t count  P.P.S. Killed the public Mag7 lineup – low engagement, too distracting, only shows half the picture. Not letting anyone get wiped out on my watch.


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