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Tuesday, October 12, 2021

Market Update 10/12/21 - A Rare, "Buy The Dip", moment!

Buying the dip is usually a loser strategy, unless you have a valid pullback target.... 

If you don't have a pullback target then buying the dip is guessing, or gambling, not trading. 

Remember last week - in a blog dated 10/8/21 - where I suggested that you chart the breakout on the $DAX, and check the moving averages on that index, because Germany, and the US trade together?Every market is manipulated, and much of that manipulation takes place in Futures markets, and what better way to take US futures down, than by selling European markets first? 

I can tell you from experience, you can't consistently time US markets, without charting Germany, and If you did your homework, you should already know why this is a buy the dip moment! If you didn't do your homework, then shame on you!  Don't worry, I'll provide a chart, and lay it all out for you, further down the page.   

I was up super-early this morning, watching futures, doing some in depth analysis, as well as trying to decipher what the financial fake news is reporting today. 

For instance: 

1. Once European Markets opened, Bloomberg was seen running with the headline, "European Stocks Slump"... This word "slump" points to a pullback (or dip), not something worse... and there's a good reason for that. 

 Bloomberg insiders, and the financial interests who control Bloomberg, know damn well where this market is going, as well as I do, and so their headline is well choreographed.   

2. Just a few weeks ago, Nouriel Roubini - aka  Dr. Doom - was rolled out, by the financial fake news, - just as he was in 2008 - in order to spread fear, talking about the "global dept trap", and the end of the bull market, while at the same time Chinese real estate giant Evergrande's default seemed imminent. This was also well choreographed.     

Well today, Nouriel Roubini suddenly changed his tune, and none-other than, Goldman Sachs agrees.   

Roubini Says Fed May ‘Wimp Out’ on Hikes Despite Inflation (several new sources) 

Of Course Roubini is correct, and the 10 year Bond Agrees! 

$ILTB (10 yr Treasuries) - Bullish 

Gold also agrees, and had this been a real inflationary risk-off moment, you would've seen money flowing into precious metals. I think there's a good chance of this in 2022!  

Of course the $VIX, and it's no coincidence that it closed at exactly 20 yesterday. Watch for that to be immediately hammered back down at the open.   

And Finally The $DAX Chart 

$DAX - breaks out above the 200 day moving average last week. Filled the gap - bouncing off the 15,025 level - this morning. If you're a student of Elliott Wave Theory you should already know that sideways consolidation in wave 4 is common.  

 This sets the stage for a sustainable rally in heavily rigged US markets. 

China had a nice run over the past few days, but left a big gap behind, and the $FXI ran up against resistance. I already took profits. 

I added a gold miner chart to the public charts area, and looking to get back into that trade once we see the Fed remain dovish in the face of rising inflation. No doubt they will do anything to not slam on the breaks, while there's a Democrat in office. Perhaps runaway inflation will be good for equities prices. I only worry about how much a dozen eggs might cost...? 

Be sure to checkout yesterday's updates on the energy sector, because we should see the end of the sector rotation shortly. Energy prices need to come down, if the fed is to remain dovish...! 

Take Care, AA   


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