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Friday, October 1, 2021

Market Update 10/1/21 - Setting for an October rally

 I see the bears come out of the woodwork on twitter, and that can only mean one thing! Looks like the bear trap has been set, and just ahead of October Options expiration, and then comes short covering season, heading into the Holidays.  

Yesterday, we saw the NASDAQ wash out to a slightly lower low, while most other charts remained intact. Could mean that the powers that be, are only interested in shaking out speculative tech traders, because they want those stocks for themselves. Ever since pro traders came back from summer vacation, they've done nothing but trash talk the market, but watch for them to change their tune, now that they've accomplished what they wanted. 

I was having some technical difficulties yesterday, and had to cut my update short, and attach an update to the previous update - which you can usually find pinned to my twitter page. Always look for important updates in that area. 

So yesterday's pullback wasn't unexpected, but it wasn't until after lunch that I realized the Wilshire 5000 target hadn't hit. 

$WLSH - Looks like a normal pullback, and a back-test of last weeks low. Bullish obviously  

This chart used to be in the public charts area, and was used to call the most recent broader market top. Guess I blogged it, in Sept, but don't remember... 

The target was nearly taken out going into the close, but could retest again. 

See, I no longer trust the heavily manipulated, $SPX, and the heavily traded $SPY.      

On to bigger and better things, than the broader market. 

Natural Gas - I continue to sell nat gas because I figure the market can't get past the so called energy crisis overseas, until natural gas prices fall back in line. 

This morning I'm seeing a good downside target - and an obvious one - at the 50 day moving average. 

I'm also seeing heavy buying on the pullback in KOLD.

$KOLD (3X Nat Gas Bear) - nobody should trade this unless they can handle a 30% daily loss. It's just that volatile! 

If you're uncomfortable with trading Nat Gas, then Emerging markets should rally, on lower energy. I believe there's even a leverage Europe bull, but I'm almost out of time....  

$EDC - trades into a bullish inverted triangle 

Yesterday's bounce in gold was about the most exciting thing to happen all day, but we didn't see a breakout. Can't confirm a reversal there, yet.... 

You can find several miner charts in the public charts area, including another view of the $GDMm which I added  after yesterday's rally stalled out.  

Maybe once the $USD tests the 200 week moving average, we'll see gold gain some traction. 

That's all for now. 

Good Luck, and see you next week, AA 

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