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Tuesday, October 1, 2019

Really: "Stocks Headed For A Chaotic October"? Market Update October 1, 2019

"Stocks Headed For A Chaotic October"?

In quotes, because this is the Banner, FOX business was seen running this morning, as Maria Bartiromo continued to report on:

1. The Dems (bogus) Impeachment inquiry.

2. The latest Chinese WMD's (weapons of mass destruction) - capable of hitting the US in as little as 30 min. - which will be included in an upcoming parade, celebrating the ruling Communist Party's 70th year in power.

3. North Korea blah blah blah

Of course, none of this has anything to do with today's trade, but Fox Business isn't really a business network, as far as I can tell. Still sometimes I'm forced to watch FOX, when I become disgusted with Bloomberg/ CNBC, political propaganda. FOX is like the right echo chamber, for the fake news media, so it may seem more fair and balanced, but at the end of the day, they report the same thing as CNN, except for Dobbs, and Trish Regan, who don't come on until the evening.    


This brings me to my point: Why is FOX making bearish predictions, when the markets (typically) climb as wall of worry?

Yesterday it was more bearish coverage of the violent protests in Hong Kong. Looking at yesterday's market action, the market liked seeing order being restored. Also See: Hong Kongs leader Carrie Lam heads to Beijing 

 At this point; you're probably wondering why I continue to focus on the fake propaganda news, but I do have an important point to make.  

It seems certain traders, and money managers (mostly the ones I see on CNBC), have lost sight of what really moves markets. They actually believe Trump is to blame for a "global slowdown", and they fear the next Trump tweet. The algorithms have even been programmed to sell every Trump headline, and there are many... and scared money continues to hide in so called safe places, like global utilities. This isn't just a few knuckleheads on CNBC making their trades, based on a psychological psy-op, it's bad actors in the deep state bureaucracy, and the globalists, who have been planning to take the market down. 

My Point is, that these same bad actors have probably been heavily shorting this market, on bad intel, and that could quickly unwind. My sources tell me there is a counter-coup already underway! 

 Global Utilities - in a bubble, and overbought above the top of the channel     


Low volatility $SPX fund $SPLV looks like another bubble, and a very crowded trade.



I could show you other charts, but I'm already out of time. I only wonder if the safe trades can collapse, without the baby being thrown out with the bathwater.

Short term - bullish 

$SPX -  As far as the short term trade. The $VIX came right back down after Friday's bear trap, and this rally seems to have legs. As long as the $VIX continues to make lower lows this rally can continue. You can find this 5 min chart in my public charts area.



Opening bell rang 15 min ago, so I'm outta here.
Good luck, AA


 



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