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Tuesday, July 13, 2021

Market Update 7/13/21 - Technical Tuesday - Another "all time high", sold!

Technically: The $SPX touched another new all time high on Monday (yesterday), but it was only up a lousy 15 points. Momentum has slowed to a crawl, and that points to a top. Not sure if it's right here, but it's close, and you'll see what close means on the long term chart, at the bottom of this page.

$SPX rolls over. This is the 30 min chart we've been watching since last week. 


Several sectors continue to consolidate in sideways patterns, despite the occasional (rigged) higher high on the S&P, or NASDAQ. You don't see the NYSE breaking out to new highs.  

$RUT for instance: The Russell 2000 has been consolidating sideways for months. Kind of looks like a breakout above the upper purple (pattern) line. Maybe it'll retest the recent highs, before year end.   


But rather than chasing another breakout on the $RUT, I'd be looking to sell it, anywhere above the 240 level on the $IWM. 

For the time being: The market is being sold every time the $VIX breaks back above 16, and that should continue. Last week, I predicted more volatility, and we're already seeing it.  

I'm done with the Oil and Gas trades for a while, and back to picking stocks. Maybe take some time off, before traders return in Sept. I'm working on a couple new business prospects, and may give up blogging all together. I'll let you know in future updates. 

Long term charts look downright scary: 

The Dow: Has been looking toppy for several months, and could hold up for several more.  Don't chase the market here. The Dow has doubled since the (created in a lab) fake covid19 crisis, pullback. You can't fool Wall Street. It was clear after only 1 month, that Covid was not a real crises. I'm not denying that there was/is a virus, but it was no worse than a bad flu season. It was only used to justify more spending, and to keep populations confused, and in line, before the real crisis hits. 


$SPX - don't chase it. I don't care if it goes several hundred points higher, from here. 


Europe probably looks the worst, and the European banking system is only retesting the highs of 2007. 

Hope - pumped by not 1, but 3 business cable news shows, and fed stimulus has done nothing but prolong the inevitable.  Collapse of the global banking system is a certainty. Give it a year...



Take care, AA  




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