Yesterday, I predicted we'd be "off to the races", and seeing is believing, yet I don't consider a one day rally a huge victory, unless it's a 3% move or something. That would look something like a 1000+ point rally on the DOW... and if you recall, DOW 35.1 is resistance. And why are we watching the DOW? In case you missed previous updates, the Dow continues to lag the rest of the market, so until we see the dow make new highs, there isn't much chance of a pullback.
If the market had rallied on Wednesday, during normal trading hours I might be more bullish, but this morning I didn't have to look very far to find the tell-tale signs of market manipulation.
I also don't put a lot of faith into a 1 day rally, especially when today is Options Expiration. Rigged market, or not, this is when resets happen. Of course it is a rigged market, but in part it's also a market that's being regularly manipulated, by whoever is triggering buying programs... and I'm going to show you 3 instances of that, in the past 2 days.
1. $INDU (The DOW) The opening bid was raised above the 20 day moving average, in order to trigger baying programs. This suspect 20 day (ma) level is also heavily traded, by the new investor class, which has to be the most unsubstantiated group of investors in history. I should come up with a name for them, such as the robinhooders, or something. These are also the so called reddit traders, who are constantly chasing 100% gains. I suspect less than 10% of them win, and to be honest I'd like to be in that 10%, but I just can't seem to suspend reality long enough. I mean how many of us are willing to chase a short squeeze, and for how long? And are these even reddit traders, or just the usual suspects (the hedge funds)? I suspect it's the latter, but I digress....
Before we move onto the next chart, make a mental note, of where the lower channel line on the DOW it pointing. The 200 day moving average.
2. Natural Gas - Think it was only last week, that I pointed out that the rug had been pulled on the $UNG, and that was the level to watch, and the breakout was something I forgot to mention yesterday! See, this is what can happen, when I'm watching 6-7 sectors at once?
$UNG (US Natural Gas Fund) - is allowed to rally back above the 20 day ma. I expect this to make several more runs at the recent highs, and hold above the top of the channel (seen in black).
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$UNG broke down below the 20 level. I wouldn't worry too much about it. I only have a small short position on $NatGas anyway lol pic.twitter.com/ILCJA2YusA
— Veteran Market Timer (@3Xtraders) October 14, 2021
I have several examples of Natural Gas stocks being set up for the dump.
$HES - An Oil and Gas Company Based in NewYork - looks like the perfect short! $20 Wave p-2 target, should look like a washout below support ($24). Watch this one!
I wasn't planning to show $HES, but the chart needed an update anyhow.
$SU - This one looks like it's about to crash into a powerful wave 3. Also note the bearish head and shoulders pattern. Wave 2 is the classic suckers rally, then wave 3 comes along, when everyone is still bullish. "Never under-estimate the power of a wave 3", is one of my personal trading guidelines.
Still looking for the energy chart, I had in mind.
Oops - looks like I sold $ZETA too soon. Oh well, can't win 'em all, I guess
Shit, I'm running out of time! Opening bell rings in 37 min. lol
Here it is!
$GDP - has a nice right to it! Broadening top climax pattern
Now what was the 3rd example of market manipulation in 2 days? Green Energy was the one I pointed to in yesterday's blog, so that makes 3, but there was another....
I decided to trade something different this time, and that's the DOW Web bull - ticker symbol $WEBL. It performed ok, and up over 10% from where I bought it, but it seems to be thinly traded, so it can be a little tricky to get it for the right price. Anyhow, this leveraged ETF is another good example of how screwed up this market is trading.
$WEBL - See where this was sold at the 50 day moving average? This would be normal, if it wasn't a leveraged ETF, but it seems like everything is controlled by algorithms nowadays. I guess, I shouldn't be surprised that the programmers would include every ETF in their programs, but it has really screwed up the chart patterns, and it's probably at least partly responsible, for the market bubble we find ourselves trading in. Anyhow, I'll be enjoying this gap up - above the 50 day ma - this morning.
Oh yeah! Now I remember what number 3 was!
3. The $SPX - 15 minute chart! This chart is a mess, but see where the 200 X 15 min Moving average, has been sold since the selling began. That's program selling, and it's somewhat mind boggling to try to wrap your head around. You can also see what happens when the market gaps up above that level, and it always seems to be on a Friday. It's always been a crazy market, even crazier than usual, but there are many forces at work! AI
Final point!
Watch for a pullback next week, assuming the controllers going to get paid on their crooked Options Bets, on this Friday OPEX.
This morning Res. on the $VIX becomes 16.99, but there's a very good chance the $VIX gaps up to fill the gap that was left behind yesterday, within 3 days.
Good Luck, AA
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