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Friday, October 11, 2019

Market Update Oct. 11th, 2018 - (another) Happy Short Squeeze Friday

Of course, I saw this rally continuing yesterday, and alerted to it in real time - in the Public Charts Area. I believe the market is getting ahead of itself, but it is what it is. I'm still working on an upside target on this rally, and watching too many charts, but at least I have all day to try to get a handle on it.

This is how it always (99% of the time) goes. 

1. Drive the $VIX up ahead of OPEX - setting the bear trap

3. Squeeze the shorts into OPEX.

No doubt the short sellers are going to remain trapped going into the weekend, and keep in mind monthly OPEX is only a week away.

Knowing every Options expiration is an opportunity to manipulate markets, helps me time it... and hopefully the perma-bears who still follow this blog are no longer getting caught in the bear trap (s).   
Yesterday's trade: No sooner than the market opened, it was clear it was going higher, and I put a bullish channel on it, and by the late afternoon it clear, the $VIX was being hammered down, ahead of, yet another, Short Squeeze Friday.

Funny, the idiots at Bloomberg are calling the rally in Oil, "a snap reaction", but not calling the rally in equities, "a snap reaction".

Getting back to the market getting ahead of itself; I believe we could get another sharp pullback, before rallying higher into Oct. OPEX, and without getting too much into Elliott Wave Theory, I think the sharp pullback we saw earlier in the week, wasn't the end of consolidation. I wish I had more time to go into it, but I have charting to do.

$VIX.... *

Correction: =  In the meantime, keep a close eye on the $VIX, That's the 50 week ma (*16.75), as I alerted to yesterday, and watch for alerts in the Public charts area.

I'm out of time


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