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Monday, October 4, 2021

Market update 10/4/21 - There's Always A (rigged) Bull Market Somewhere

With so much media attention, being focussed on China, and a supposed "Energy crisis", you may have missed the 5% rally in Financials last week. 

$KRX - Regional Banks up 5% last week. Looks like a bearish wave "4" 

Of course we've also seen Energy continue to rally, while the rest of the market remains somewhat choppy. 

Seeing as this is the beginning of the 4th quarter, and any money manager who isn't fully invested in the tech rally, risks being promoted  to the unemployment line; watch for a sector rotation, back into big tech ASAP. 

$NDX - 16000 looks like the target, at the top of an ending diagonal triangle pattern (seen in black), and I'd expect that target to be taken out before the end of the month. Once everyone is fully invested, we'll probably see the rug pulled out again, but the price action could continue to hold up in this pattern, for a couple more months - for 4th quarter window dressing.     

Also watch for $SOX to go along for the ride, since semiconductors must lead. 

$SOXS (3X $SOX Bear) to gap back down into the channel (below $6.50), any  day now. 

Looks like futures are already recovering. 

Good luck this week, AA 

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