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Tuesday, September 21, 2021

A one day sell-off, does not a bearish trend reversal make

 A one day sell-off does not a bearish trend reversal make 

 If there's one thing you should take away from yesterday's apparent one day off, that is it! 

Even The top Fed member bank, J.P. Morgan knows this! 

JPMorgan Says Stock Decline Represents Buying Opportunity (

 One day sell-offs are pretty common, and often inexplicable. Of course the financial fake news has to have something to report, so they run with whatever helps shape the official narrative, or helps the Banks, hedgefunds, behind the scenes, or just make something up, like the "Evergrande
 story. Or how 'bout the "Trump, China, Trade War", story; we were subjected to every time the market pulled back while Trump was in office? Biden's policies on China haven't changed, but have you even once, heard, Joe Biden blamed for market jitters? No   

White House trial-balloons new China tariffs (politico 9/13/21) 

What about the 4th wave of Covid, and the highly contagious Delta Variant? Guess the market wasn't worried about that one, yesterday, although they did find the time to try to convince people that covid was worse than the Spanish flu.

COVID-19 Has Now Killed About As Many Americans As The 1918-19 Flu (NPR)

No doubt the banks have been pushing for a correction, ever since they came back from summer vacation, and I can't blame them for wanting to buy stocks lower! 

‘Markets are priced for perfection and vulnerable,’ says the CIO of Morgan Stanley Wealth Management" (marketwatch)

Makes me  wonder if Morgan Stanley, or their affiliates, had anything to do with yesterday's shake-out? Guess we're never know...

 But are we really suppose to believe that after 6 months of selling, of Chinese stocks, it wasn't until yesterday, that the market seemed to notice Evergrande going bankrupt? Sure they try to make it sound like the market has been selling off for weeks, but we hadn't really seen much of a pullback until yesterday. Why yesterday? I suppose it could be that since China is trading on light holiday volume, this was an opportune time to take china down again. It was also an opportune time to load up on cheap Call options, considering Friday was Sept OPEX. But it just sounds better to report that the market is fearful of something, than to admit markets are often manipulated on light trading volume, right around Options Expiration. If you report the truth, then people might wake up, and realize the market is rigged, and that might shake "investor confidence", and we can't have that!   

Getting to the Charts shortly: 

I just killed it yesterday, from taking profits, to buying the dips. I even bought some Chinese stocks, btu not the boring $FXI.

$VIX never touched 30, as I predicted it wouldn't, yesterday. 

Gold is holding up quite well, and back in favor, thanks to the fake news. 

I follow a lot of the nonsense on Twitter, as a contrarian indicator, because let's face it, 90% of traders are wrong, more often, than not, and when you see folks trying to convince  retail traders that the market is in a deflationary death spiral, and broken, you need to run in the other direction. Nothing is broken. 

I have a bunch of charts to blog, including how they started selling in Germany. 

$DAX - You can see where they pulled the rug out, below my red (pattern) line. 

High Beta: 

They also pulled the plug on High Beta, by taking out the 50 day ma, at the open. Oldest trick in the book; raising, or lowering the opening bid. This looks like support for a little while at least.

$SOX - they did the same thing on $SOX. Lowered the bid below the 50 day ma. 

I would not want to be holding 3X bear $SOXS this morning 

I'm outta time, and it's going take some time to see if this rally still has legs, and it could remain choppy going into Thursday, and I'll let you know why, in the next update. 

Good luck, AA 




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