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Tuesday, November 26, 2019

Market Update 11/26/2019 - Reviewing Yesterday's 1 Day Rally in Biotech, Australia, E*trade $ETFC

Trading remains pretty active, considering many traders are already on vacation, but the powers that be are hell bent on hold the market up, going into the end of the year.

Yesterday: Of course, I saw the setup for yesterday's rally, on Friday (see yesterday's update), as well as the rally in $SOX (with a 1720 target ), but this was no normal rally.

The manipulators raised the bid at the open, and continued to throw everything they had at it, and Mutual Fund Monday - buy orders - helped lift the market, going into the close.  It was engineered, and I suspect the "Merger Monday", story was designed to help squeeze any remaining retail short sellers out at the top.

Since I have such a good handle on this market, and these moves are so weak, and boring, I find myself watching more financial fake news than usual, as irritating as it is.

Financial Fake News Update:
 1. "Stocks make new all time highs". This is supposed to boost consumer spending, going into the holidays, but it's also good for EOY bonuses. Gotta keep the money flowing!   

2. I caught 5 minutes of Mad Money, and James Cramer made a big deal of "all 3 major indices closing at new highs". I suppose that means, mission accomplished.  

3. One of the ass-hats on Fast Money, called this a "runaway bull market". Proof these people don't have a clue.

4. FOX Business shows, "market futures", up 100+ (133 - 177) points - after the close - when they were actually red. I suppose this may have something to do with the fact that the regular engineers are on vacation, but this network is unreliable as ever, always pumping the "Trump Rally", while they attempt to downplay any bad news.

5. Bloomberg: The avoided reporting the bad news on their cable network, but this morning they were quick to report the fake news, "The Australian Banks claim, they don't need QE". See:  Australian Banks Are Crashing Down to Earth - bloomberg
The World's Most Profitable Banks Leave Australian Lenders Behind
 Not to mention Australia's, Immigration, energy (inflation), real estate, and climate, problems. 

$SPX ended the day 6 handles above where it was trading 6 day's ago. The 1 min chart now resembles an upturned triangle pattern, and if that's correct, then it can retest resistance, next week. I see 2 days of consolidation coming, and the market closes early, Good Friday. That would set up for a Cyber Monday Rally, but also see the $NYSE chart below!        

Biotech also lead, yesterday's rally, but it's been trading in a sideways range for the past 4 years. Nothing to get excite about there.  

$NBI - I saw this Powerful wave C rally coming back in Oct:

 $NBI: Longer term - Looks like a Primary wave (4), or A of 4, in a larger correction. It's been trading sideways in a triangle pattern, and these normally take forever to complete. Give it another year, or 2....  

The $RUT ended up 2%, and if the bulls weren't excited about that, it's Emerging markets... but I only had to adjust the top of the pattern on my chart, slightly, and these are only retests of the previous highs. A big nothing burger. 

 I thought this market could hold up into Cyber Tuesday, but I'm not sure now. The bulls have already over-played their hand, and the $VIX short interest is extraordinary.    

The #NYSE has traded into what looks like a short term topping pattern, but I suppose it could rally off a pullback target, and hold up for a few more days. 

 I've added the global DOW chart to the public charts area, and it'll be interesting to see if the US, can decouple from the rest of the world, and for how long.... 

Still looking for a little rally in $GLD here.

That's about it. I don't have a clue which sector they plan to pump next, but I kind of like E*Trade here. I'll add this chart to the public charts area, and wait for the breakout....

Take Care, and have a Happy Thanksgiving,

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