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Friday, December 6, 2019

Market Update 12/6/2018 - Pump 'n' Dump Markets Expected To Continue

Quick Update

The short term isn't too predictable, because of the light volume, and because the short sellers picked the wrong time of year to get short, and now they remain trapped - as I showed you yesterday - and you can see them capitulating on this mornings jobs number, but I expect this top to look just like the previous two...

1. Pump

2. Take profits

3. Dump

Yesterday we saw the $VIX beaten back down below the 15 level, even on more bad news reports coming out of China.  I believe my resistance line on the 10 min chart was correct, based on that news report, and the momentary $VIX breakout, but it couldn't even pullback more than a few points, before the $VIX was immediately hammered  back below 15. Manipulation 

That becomes the number to watch ($VIX 15), and you could probably add to your shorts over the next week or 2, and set a $VIX alert on your phone. I like the mobile Webull App, and it's Free. I"d also set an alert for $SPX 3100 level, because that's support, as we found out at yesterdays open.

We're in profit taking mode, as you can see on the chart, and that usually takes a couple weeks.

If we see a correction before the Christmas break, I'm still looking for support at the 50 day ma on the NASDAQ, and maybe just above 3000 on the $SPX. That would set up for a nice little Santa Rally, going into the end of the year.

I'll try to pin down a date as things progress, but like I said a couple days ago, "don't hold your breath". Enjoy the holidays! 

GL Traders,

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