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Friday, July 9, 2021

Market Update - Short Squeeze Friday 7/9/2021

 Market bounces back into another short squeeze Friday. No surprise, if you happened to catch my review of yesterday's market action.  

Looks like this on the 30 min $SPX: I don't consider Friday short squeezes bullish. It's just an excuse to manipulate the (weekly) options market.  

Something you may have missed - if you don't follow me on LinkedIn - is the breakout in commodities, which I saw coming, yesterday.  

$GTX (S&P commodities index) - crawls back into the bullish channel, after being bought at the 50 day moving average. Classic bullish setup  

$UNG - Natural Gas bounces off support 

$TSX - Even the ridiculous Canadian market snaps back. This looks like a backtest of the broken trend (or pattern) in Blue, so I'd be looking for another leg down, rather than a break out....   

The NASDAQ - trend seems to remain intact, but not sure how much longer this can continue. 
My best guess is that we see more volatility, and sideways - to down - consolidation. 

China is up big - as expected. 

 $YINN (leveraged China bull) breaks out. Must be good news, that Bloomberg isn't reporting? 

That's about it for this week. Next week is Options Expiration, so expect plenty more volatility! 


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