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Monday, April 24, 2017

Bullish Market update 4/22/2017

1. Lower high on the $VIX

2. Dow holds key support, as seen on the long term (weekly) chart below.

3. Bullish spinning top candle seen on the same chart.

4. Money has to be put to work, and MM's have been sitting on their hands since March.

5. Contrarian indicators - namely folks on twitter trying to put bearish words in my mouth on a Saturday. Like I said, I never told anyone to sell this market, in fact I called those who sold at the lows, "idiots", and called for a rally to 2369 on Monday (today).

Really, if you're not even going to pay attention... don't talk to me. Even when you see the bears agreeing with me, and re-tweeting my charts, you should place them in the contrarian camp. Probably half of them are betting the other way, anyhow. Trust no one. Trust the charts.

Speaking of contrarians: Lately you've seen me busting on Jim Cramer, after I caught him pushing a negative, "Trump trade" theory, and waving his arms over "geopolitical tensions" - with North Korea, and pumping gold... That's the Fake News talking. That's the networks selling fear porn, in order to shake you out of your trade, and I tweeted out many bullish charts on Friday to prove it. I don't think I have to tell you who owns these networks. Don't buy what they're selling. The $VIX determines whether there is real fear in the market; not the news; not opinions.

Dow weekly chart:

We got a little pullback on OPEX as predicted, and a $VIX rally (to a lower high). No fear.

$SPX - Next resistance is 2370. Support becomes the 50 day ma @ 2357.42.

I still don't like the $RUT, so if you want to hedge against the downside risk, I'd put a short trade on there.

We're not out of the woods until we see the market continue to break out.

Short term outlook: 

  1. We'll be watching a possible continuation of Friday's pullback (in wave c/2).

2. Or a continuation of this rally in a bullish channel, in a powerful wave c. of B.

I tweeted a ton of bullish charts on Friday, showing which sectors and stocks are likely to lead this market. Ignore those who try to put words in my mouth.

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