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Wednesday, September 13, 2017

Rigged Markets & the Financial Collapse - Update 9/13/2017

I haven't been paying very close attention to the markets this week, but that didn't keep me from nailing yesterday's open, within a few hundreds of a point! This isn't the first time... but I still can't help but get excited when I nail a target like that!  

We've seen many stocks ($KORS, $PLAY $DKS, $AMC , $BWLD just to name a few), and the retail sector, getting killed, over recent months, yet the rigged market continues to trade near all time highs. It's a balancing act, and not easy to anticipate which sector will get trashed next. We don't trade retail; I don't know of any easy way to short it, and it's probably too late for that anyhow. 

For example: $AMC


Recently, we saw the typical short squeezes... engineered on light holiday volume, and certain stocks continue to run, for example $GM which I called out months ago.

What we haven't seen is tech being sold, and that is proof the market is rigged. Nobody cares if any number of stocks lose 20% a day, but you don't see them selling $AMZN, or $AAPL, because that would draw too much attention... and cause the $VIX to rise, and we can't have that! The market is rigged, and those who continue to pump the tech sector are behind it, in my opinion (disclaimer).

 Big tech is going to crash, and I see a top already developing, in Apple.  

$AAPL - so much for those who predicted that Apple was going to soar, when it unveiled several more (of the same) over-priced iphones.

We saw the Dow bounce off the 50 day ma again, and that brings with it program buying, and gives the appearance that stocks are bullish. Stocks trading above the 50 day, and the 50 day trading above the 200 day, is a no-brainier, to most money managers, and even the average investor... but we've tested this average at least 4 times now, and that's not bullish. Just as upward resistance that continues to retest, tends to break out, support that continues to retest, may eventually break down.

 I don't like the broader market, and most stocks are not rallying higher. It's a stock pickers market, and I've done some buying, but I'd rather trade sectors, or commodities. Whatever works I guess...

$GDX - Found this pattern (looks like consolidation) on the $GDX yesterday. I wouldn't trade it right here, but I would buy a retest of the recent lows, going into Friday, OPEX.

Once we see the big tech names top out, there's a fortune to be made selling the crash, but I think we're still a few weeks away.... possibly in conjunction with a crash in BitCoin. More on that later 

I'm still busy working outside, doing some carpentry, this week, but I should be back charting full time as soon as Friday.


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