I have a lot to get to this morning, and let's start with something I failed to mention in yesterday's update. It's the fact that the bid on $LUMBER was raised above the 50 day moving average, in order to facilitate the short squeeze, and to trigger program buying. We see this all the time, and it's something to look for, any time, any market, gaps up, or down, for that matter.
I think it's a little more than coincidental that Morgan Stanley calls for a pullback, and the fake financial networks run with the story, one day after the charts begin to break down, but historically the day after labor day, is a good time for a pullback - according to CNBC! (sense the sarcasm)
That's right, all the short term charts - besides tech, and whatever else was up yesterday (China) - were seen rolling over, and apparently Morgan Stanley knows something about this.
Don't believe me, check out the charts:
$SPX - 15 min view - breaking support
$SPX - 60 min view - support breaks. Next obvious support level 4500 ( a round number). It's too early to even call this a reversal, let alone, a major top, and we could still see another retest of the highs. Time will tell, but with Sept. OPEX coming fast, we should have a good idea what to expect by Sept 17th.
NASDAQ ($QQQ) - 10 min view - technically not broken, and even CNBC seemed to know the NASDAQ will probably make another new high. Learn to read between the lines, and you'll see they are not only located at the heart of the NASDAQ, but they are a giant mouthpiece for the powers that be, as the NASDAQ continues to be manipulated ever-higher.
I think the best bet for a pullback, could be in China, or Europe, and I suspect Europe, and specifically Brussels has been calling the shots for a very long time. Another topic for another time, but you really need to watch the Wilshire 5000, because this is the index being watched in Europe.
$WLSH - 60 min view - Watch for this bad boy to break at the open, and I'll be adding this chart to the public charts area.
$VIX bounced out of the hole yesterday, so that's another thing to watch. Maybe the selling doesn't accelerate until next week - when volume should pick up - as long as they can continue to hammer the $VIX down.
Even more important than the $VIX
I know I probably sound like a broken record, but I can't stress enough, how important it is to watch the moving averages, and even more-so, now that the machines have taken over. Of course this makes charting, and trading even more complicated; when the pattern you've been watching for weeks suddenly breaks, only to find support at a key moving average, and the next thing you know the price action has bounced back into the pattern. In some cases this really skews up the chart, or worse you're trade.
If you were following me during the covid panic, then you kno strategic support was purposely taken out in pre-market, several times in a row. Meaning that, instead of the market selling off to (for instance) the 50 day moving average, and dip buyers, or machines being given the opportunity to buy that level, the 50 day would be taken out at the open, and that caused forced selling. The powers that be must have spent weeks - in advance - orchestrating that crash. No doubt they had been anticipating the same wave C (pullback), I had been warning about, for months. This is one reason, I refuse to believe covid was the real reason for the pullback, and this is proven by the new all time highs in equities, during a so called pandemic. There is no crises, never was a crises, except for the continuing banking crisis in Europe and elsewhere, and the fact that a never ending supply of fed money is needed to prop up the great ponzi market. If covid can be used as an excuse to bail out the global bond market, and rescue foreign banks, and hedge funds, then the public isn't going to be able to voice an objection. Shut up and obey, remember? For as long as I've been trading, these are the only market fundamentals that matter, more bailouts, and free money.
Getting back to the technical rigging of markets, using nothing more than moving averages.
You'll see me add a note to my annotations anytime this happens, for example on the DOW chart below.
$INDU - bid was raised (above support) last Oct. and the short sellers squeezed right through the holidays. This was no more a coincidence, than the most recent moves we've seen in lumber.
Now you see the price action has overshot the top of the channel, and momentum has died, because this is where the so called smart money has been taking profits for the past several months. Could it continue to trade above the top of the channel? Sure, anything is possible, in a perpetually rigged market, and the market is measured in months, not days.
This morning we see DOW futures down "triple digits", which is just more meaningless reporting from the clowns at CNBC. If they wanted to report something relevant, they would point out that the 50 day moving average on the DOW could be taken out at today's open, and then expose Morgan Stanley, as being a big part of the crooked banking cartel, known as the "federal reserve", but don't hold your breath...
Yes, America, a Banking Cartel Exists and Here’s the Proof
Things to watch:
The $USD continues to be bought above the 50 day moving average. This explains why it's been trading where it has for the past several weeks, more than anything else. If you know what to do, when the 50 day moving average breaks, then you can call yourself a trader.
China - has gapped up several days in a row, for no other reason, than light holiday trading. Watch the 50 day moving average on the $FXI. If that's going to hold, then don't waste your time...
Next support is the 200 week moving average, so maybe Chinese stocks are going to hold up into Sept. OPEX.
$AMZN - fills the gap on super light holiday trading volume.
Sorry I can't reveal all my trades, but I want you to learn how to chart, and trade, for yourself. Giving out my trades is pointless, and makes me a target of unscrupulous hedge funds.
AA
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