Tuesday, May 30, 2023

This Isn't Normal! The So Called AI Gold Rush In Technology Stocks And The Rigged Options Market

To get you caught up to speed on this Technical Tuesday, day after Memorial Day. Light volume holiday trading continues, as many traders remain on holiday this week.  

The $SPX managed to close above the 4200 level, for the second week in a row, on Friday, and that round number target was easy to achieve, on light Holiday volume. 

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Thursday, May 25, 2023

Finally Seeing Capitulation In The Tech Space, Germany in a Recession, and what about China?

 Finally Seeing Capitulation In The Tech Space 

I've been predicting that we would probably see capitulation in the QQQ's, and FAANG, on NVIDIA earnings (on Wednesday), and seeing is believing. 

We've been tracking NVIDIA for a while now, so it was actually an easy call.

These big tech names have been the only thing working lately, and even yesterday - on a down day - nearly every FAANG stock closed higher.  

Panic Selling In Europe and China Spills Over into US Equities 

We finally got some clarity on the sell-off in Europe this morning, as revised numbers showed that Germany actually contracted in the first quarter. The powers that be, were obviously tipped off to that, and sold beforehand.  

Germany still looks bullish to me, and it's up this morning 

$DAX - looks like a running wave B, followed by a pullback into a powerful wave C. 
stockcharts.com


US Markets 


$SPX pulls back to the 4100 level, for like the umteenth time. The Dow tests the 200 day moving average , ditto. NASDAQ continues to run - off the chain. I suppose it could hold up for a while on light volume, as the smart money unloads their shares to Joe Sixpack, but I would expect to see some profit taking, ahead of the holiday.  

$VIX - I can confirm that the $VIX was rigged above resistance at yesterday's open, so it appears that someone was hoping that the sell-off in Europe, and Asia, would spill over to US markets. 

Looks like a good ol' fashioned bear raid, as I pointed out in yesterday's update. 

Speaking of Yesterday's update: I forgot to pin that to the top of my twitter yesterday; in case you missed it; here's a link:  

Market Update, plus a Super Bullish Chart Added to the Public Charts Area


That's all bullish, not to mention the fact that we're trading into a holiday 

Getting back to the China 

I did a little digging into what's really going on in China, because the "new covid variant" story, CNBC was seen peddling after Tuesday's close, just doesn't hold any water. 

What about the Chinese Chip War? Why not just simply blame that? I'll tell you in a minute.   


 I did a YouTube search for information: 

I'm not sure about the reliability of the source, and this looks like propaganda to me.    


Same thing here: Very similar video - 5 days ago.  

 


Fox News is also seen spinning anti China propaganda 




It's obvious the Republicans, and the NeoCons (on both sides of the aisle), want to escalate the trade war with China, or it could be that both parties are playing a dangerous version of good cop, bad cop, with China. Biden and the Dems call for sanctions, and the Republicans call for stronger measures. 

In the Fox News interview Gordon Chang mentions that the G-7 is decoupling from China.

Here's China shooting back 

Irrelevant G7 is desperate to distract world from its own failures by blaming China

  • The G7 summit’s failure to seriously address the deficit in funding for global development risks making it appear out of touch with the real world
  • By prioritizing its geopolitical goals, the G7 is turning itself into an economic Nato and destroying global peace and prosperity



This would be a great story, but sadly you won't see that on the 6:00 news! 

Why? because the left, including China Joe, are actually pro China.

The chart below proves that the left has been selling us out to China for decades. 

 


The article below may help explain what's really going on in China, but I'm afraid I'm out of time 



Take Care, AA








ssss



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Wednesday, May 24, 2023

Market Update, plus a Super Bullish Chart Added to the Public Charts Area

Yesterday's Market Action

Yesterday was the weirdest trading day we've seen in a while. Weird things happen on low volume, so we can probably expect more of the same (unpredictability) next week.  

First, the market opened with Energy leading, and big tech down; something we haven't seen in weeks. CNBC is calling it the biggest down day on the Nasdaq in a month, which isn't saying much. 

$VIX = fear 

The market action was slow as can be, until the $VIX broke out above the 18 level, and oil rolled over, and from there the $SPX started to break some short term support levels. 

This was my take read on the market - summed up in a tweet - a few minutes later.  

Obvious bear raid 

There really wasn't any news to speak of, but after the closing bell CNBC Fast Money pointed to a new covid variant in China. I can tell you that there is a new variant, but it's not breaking news. 

2 days ago - 

China approves two vaccines against XBB COVID-19 variant: expert cgtn.com

Fake news that went unreported: 

The big story on Bloomberg Asia last night was that China has given back all the gains of 2023. That's not much of a surprise, since China has been selling off for several weeks/ months, but all of a sudden it's newsworthy? Not sure what relevance this has except to make a headline that sounds bearish. 

Remember they tried to pull the same PsyOp on the Dow - when it was trading near the lows for the year, when the rally actually started back in Oct. 

Smells like more BS reporting to me, but sure enough Asia was down again overnight. 

I haven't updated the China charts for a while, so I have some work to do, but I can tell you that we just saw a shakeout below the 200 day moving average on the $HSI, and that's going to be the level to watch.  

One thing I discovered after yesterday's closing bell, was that $YUM was taken down 2 days ago, before any news broke, so once again it looks like a fake news narrative being used as an excuse to take a market down. 


This morning Europe is down again, on a stronger than expected CPI (inflation number). Could be the banksters knew enough to start taking profits before this number was released to the public. 


This morning the lame stream media is obsessed with the Desantis story, and only the criminally insane leftist media would give a shit... 


The lame stream media decides what is news, and what isn't. 

They seem to think the debt ceiling is something investors need to worry about, but we've seen this story before... I think the only thing missing this time is the live images of the national debt clock, but maybe they're saving that for next week. 



This is crazy world, it's only going to get worse, when AI starts writing the script, assuming that isn't already happening. 

Same thing goes for social media... it's beyond unhelpful, it's becoming more of an annoyance, than anything else, although I did find the AI generated image story on Twitter. 

It's just getting harder and harder to disseminate reality from fiction. 

For example: Why is #MarketCrash trending in my (suggested for me) search area, when it seems like all I do is constantly debunk this kind of nonsense? Apparently the AI is so dumb, that it can't  distinguish what you love from what you hate. 

Fake Social Media 

I think I don't have to tell anyone that there isn't a stock market crash, but disinformation is a constant irritant. I have some ideas on how to remedy the situation, but I'm still working on it.  

I have to be tuned in to what's going on in the world, and even into what the current false narrative is, but I also have to be able to tune out 90% of it. 

Bullish Chart Added To The Public Charts Area 

$NYA (NYSE - New York Stock Exchange - Composite Index) I chose this chart for a couple reasons: 1. I'm not giving away any free targets, because most traders only watch the $SPX, and trade the $SPY. Granted there are $NYSE ETFs but no leveraged funds that I'm aware of. 2. This is a better representation of the broader market than the eternally rigged $SPX. 3. This at least tells you where the market is generally going over the next few months. 


Good luck, 

AA



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Tuesday, May 23, 2023

The Market Bulls Declare Victory On The Nasdaq, Winners & Losers + NVIDIA Earnings

We're heading into another holiday trading period; in case you didn't notice how slow things are... and the volume is going to continue to dry up over the summer. 

Of course the financial fake news never mentions that this is prime time for market manipulation, as the short sellers cover their positions - ahead of the summer - and this explains who has really been buying stocks over the past few weeks. The idiot short sellers! 

Winners & Losers 

Remember it was fast money traders like Christopher Verone, who proclaimed that tech couldn't lead a bull market, so we know who is buying tech. 


Remember, it was this clown who told you that miners like RIO, and Freeport, and other industrial names were going to lead the rally. Wrong! 

Notice how the lame stream media never comes out and apologizes for putting idiots like this on the air, and never once have I seen them retract disinformation. More on that in a minute. 

But for every investor who's wrong, there's someone on the other side of that trade

Meet Mike Bell, Executive Director, is a Global Market Strategist based in London jpmorgan.com

Mike Bell - who I had never heard of - was seen on Bloomberg this morning declaring victory on the Nasdaq 100. The headline was something to the effect that the index has just seen its biggest rally since sliced bread... 1998, I think? Not sure what metric they're using to come up with that statistic, or even if that's true, but the details aren't important. What's important is that these sorts of headlines are a well known form of perma-bulls declaring victory, and historically headlines like this mark market tops. This used to be more of a natural occurrence, but now that Wall Street owns all the networks, they use the headlines to their advantage.    

Also see:

JPMorgan's Bell Sees Opportunities in European Equities


Read more at: https://www.bqprime.com/videos/jpmorgan-s-bell-sees-opportunities-in-european-equities
Copyright © BQ Prime

BOOM! 

I've been saying for months that the trade originated in London, and that foreign investors continue to drive markets, and there's the living proof. 

I'm not saying this is the top, but I'd say we're close. I even went so far as to call it capitulation, last week, although I was looking for another pump on Friday, and the rally just seemed to fizzle, as Friday OPEX drew to a close. 

NVIDIA is due to report earnings on Wed. so that could be the final catalyst for the Nasdaq, and the QQQ's to be pumped one last time, in order to cause the few remaining retail shorts to cover their bets. 

By no means is $NVDA one of the largest holdings in the $NDX, but this is the name that most Fast Money traders are hanging their hat on. 

In hindsight it's easy to see how money has flowed into a handful of names in the US, and in the UK, and that that had resulted in some historic (stealth) rallies, in the Nasdaq, Europe, and even in Japan. 

Speaking of Japan

In this week's Newsletter I revealed a NIkkei chart, just in order to prove that there's nothing extraordinary about the rally in Japan, which tied in nicely with Thursday's blog concerning Bloomberg's false narrative....    

See: In all the years I've been watching stocks, I've never seen anything like this!

Bloomberg remains hyper-focused on Japan, and was seen reporting last night that the Nikkei is trading at all time highs, which is a blatant lie.

I can only imagine this false narrative is being reported in order to create headline risk, because most investors are just going to believe the fake news. 

I summed this up in a tweet:

I'm sure you've heard that markets always go back up, and although that may be true, the Nikkei is still trading below where it was trading in 1990, and the same thing can happen to any market. 

If you're young, and you're just going to keep investing into the crashes, then you're actually up, but if you are at retirement age, and counting on your dividends as retirement income, this becomes more of an issue. 

I think there's a good chance we are going to see Dow 40,000 before we see Dow 2000, but there is no doubt in my mind that we will see Dow 2000 in our lifetimes. 

Look at the panic they were able to create using the Covid story. Imagine how much worse it's going to be, when they start a nuclear war.  

Amid growing concerns of security risks to members of Congress, more than 50 senators have been issued satellite phones for emergency communication, people familiar with the measures told CBS News.

Take Care, 

AA 


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