Monday, December 30, 2019

Stock Market Update 12/30/19 - Strongest Rally in 22 Years Debunked

This rally can continue a little higher, but there's nothing historic about it - judging by percentage gains - and most recently we've only seen markets up a few points higher, on very light volume, as the main stream media continues to report, "NEW ALL TIME HIGHS". This is all hype, as usual. There is no free market, only financial engineering, and fake news.

This could be the biggest financial hoax perpetrated on the uninformed retail investor, in 22 years, but it's certainly not what the main stream media is trying to make it out to be.

 

To easily debunk the above story one only has to take a look at look at a 12 yr $SPX chart. 
In 2009, the $SPX rallied 80% - from the 666 low, to over 1100 points. The 2009 rally was bigger, and historic.   


Looking at the NASDAQ we see the same thing

This rally off the Dec. 2018 low was simply a bounce out of the lower end of the range, with an assist by the Plunge Protection Team, and because it started at the beginning of the year, it's being reported that stocks are up 30% for the year, when in all actuality the market is only trading roughly 5% above the highs of 2018.
Furthermore this rally has been thinly traded, with $SOX, and tech leading, while many other sectors continue to flounder.
Short term:
Looking at a 1 year chart of the DOW we see the dow continue to to struggle above my stophunt, ever since it was driven above the 28200 level, on higher than normal volume.  Technically the Dow may have closed at 3 new
"ALL TIME HIGHS", over the Christmas/ Hanukkah holiday, and that sounds bullish, and this is why we're seeing the price action continue to be manipulated. It's a hoax, and it's about to come to an end, sooner rather than later.  

The market looks terrible here, but I think it can continue to hold up going into the end of the year, and even if the market were to pullback in the next day or 2, money managers are going to be forced to chase performance, going into 2020.
We need to see everyone fully invested, before the powers that be, pull the rug out in early 2020.
You can follow my charts in the public charts area at StockCharts.com. 
Have a Happy New Year! 
AA 

  














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