Tuesday, June 27, 2017

Market update 6/27/2017



I stated this update last week, but never found the time to finish it. I have a lot on my plate right now, and charting 10 sectors at once is a full time job, in itself. I may have to postpone these daily updates for a while, but I'll still chart the opening bell, and tweet out some updated charts when I can.

If you follow my twitter feed, you haven't missed much; the continued shakeout in energy, the pullback in silver and gold, the snap-back rally in tech, and the stealth rally in the biotech sector, just to name a few.

This has become a complicated market, and that probably has to do with the re-balancing that occurs this time of year, and the market setting up for a sector rotation, out of Tech, and Healthcare, and possibly REITS, and financials, and back into Energy. Looks like Energy is building a base, and that process could take a couple more weeks. Could happen earlier, as the short sellers get squeezed going into another holiday. 

Last week - we saw tech stocks held down in a range, going into Friday Options Expiration, while at the same time we saw Biotech and healthcare topping out. 

Once OPEX was over the market was driven above new support. There's no doubt in my mind that this was planned (rigged), but Markets are cyclical, and June "window dressing", is also playing a role in this rally, as does, "mutual fund Monday", and if you don't understand these terms, you should google (search) them, and I plan to devote an entire chapter to the subject in my book.


The chart below shows precisely where the bid was raised above key (higher) support, so that retail shorts, who didn't see this rally coming, would be forced to cover, this also triggers computer buying... This is reminiscent of the same kind of dirty tricks we've witnessed over the past 8 years, and especially on low summer volume, and when trading into holidays, and the next one is the 4th of July - next week.

$SPX last weeks chart.



$SPX - the updated 1 min chart. Trading in a bullish upturned channel.



$NYSE My bullish outlook is confirmed by the NYSE daily candlestick chart - I tweeted out yesterday -  and I see zero (0%) chance of a sell-off, when most traders are planning for another 2 week vacation. 


$Oil - BRENT and WTI crude - trading in the same bullish pattern, and believe we've seen the bottom in oil, minus another little shakeout or 2.  


If energy can join the party, this market can go much higher, and I think we need to see bullish sentiment peak out, before we see a major market reversal.

You would think the retail short sellers would learn, after a time, or two, not to sell a dull market... many pro shorts are gone for the summer, and that offers the bulls a golden opportunity to squeeze the retail shorts. 

That's it, I'm out of time.

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