‘We’re In Trouble’: Trader Warns Interest Rates to Surge, Destory Stocks | Todd Horwitz

Consumer debt crisis accelerating

Over 13% of credit card holders are 90 days past due, 6% are defaulting on auto loans, and 4% on mortgages as job losses mount.

Real unemployment remains elevated

True unemployment measured by U6 stands at approximately 8.5%, with jobs-to-population ratios showing continued deterioration despite official headline numbers.

Fed pivoting back to hikes

Markets are pricing in a 60% probability of rate hikes with no further discussion of cuts, creating headwinds for equity valuations.

Prepare to short the rally

Horwitz is waiting to short the NASDAQ and S&P 500, expecting a 5-10% correction after the current Iran-deal euphoria fades and thin holiday volume ends.

Take profits on strength

Traders should lock in gains during the current rally rather than chase prices higher, as parabolic moves above 8,000 on the S&P would present automatic selling opportunities.

Avoid new long positions

With triple witching expiration and artificially light volume distorting price action, Horwitz recommends sitting on sidelines with new capital until clearer short setups emerge.

Oil heading to $60s

Maintaining short positions from $110-115, Horwitz expects crude to reach the $60s by year-end due to overwhelming domestic supply glut and would short again at $85.

Gasoline prices peaked

National average gas prices will not sustain levels above $4.60 and have likely reached annual highs as panic buying subsides and strategic reserves remain ample.

Gold and silver bottomed

Precious metals have completed their corrections with gold finding support at $4,056 and potentially rallying to $5,500-$6,000, making them the preferred long positions.