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Tuesday, October 26, 2021

Market Update Oct 26th, 2021 - The Rally Continues As Predicted

 The Rally Continues As Predicted 

You may ask, how does he (I) get the market direction right , every day? I've spent countless hours trying to explain how I do it, and if you've followed be any length of time, you know it's a combination of things....  I used many of the same tools, everyone else uses, but I'm simply better at it, and I have many years of experience. I also don't allow my analysis to be influenced (skewed) by any outside forces, in fact most outside opinions are used as contrarian indicators. For instance: Just look at the Natural Gas bears who continue to make compete fools out of themselves! 

I suppose this helps explain why Natural Gas was up over 10% yesterday. Anther Monday morning short squeeze. Of course the "experts" blame cool weather, for the pop. Laughable 

The opening bid on NatGas was raised above the 50 day moving average. Maybe the Russians did it? They certainly have a lot to lose.... But I suspect this market is just being manipulated by the usual suspects.   

Russian's manipulating Nat Gas? I think so

$NATGAS  - up on decent volume - shorts squeezed as usual

If you're going to trade Natural Gas, here's a question you should know the answer to: When do Nov. Contracts expire? 26 OCT 2021 (CME) 

Massive Natural Gas Futures Rally Seen As Expiry Driven, Untied to Fundamental Shifts Sept 27th, 2021 (NGI) 

The $VIX - 

I see lot's of $VIX charts being thrown around on twitter, and best I can tell is 99% of them are wrong. I may get the $VIX wrong, once in a while, but get it wrong consistently, and it becomes just anther worthless indicator, just like the MACD, or the RSI.   

Bloomberg news is reporting than that this rally is earnings driven, and it is. 

Face Book - earning drives futures higher -  saw this coming a mile away. Before I even updated the chart, I could see it had been sold ahead of earnings, so that any bad news was already priced in.   

Of course $FB is going to be used to hold FAANG stocks up, so the 3X FAANG bear can be put back on the shelf for now. Wait for the reversal to take out yesterday's $FNGD buy target, rather than watch it bleed value over time, as leveraged ETFs tern to do in a flat market.  

Market Sentiment 

You'd think the market would be upset by sky rocketing energy costs, or rising interest rates, but the market is delusional. Market makers have even convinced themselves, that higher interest rates, are going to be good for the banks.    

One sector that we're seeing roll over this morning is metals 

Uranium, retests the highs. The short squeeze doesn't make it bullish. 

$GLD (Gold) I'm beginning to think Gold is going to continue to trade in a sideways range  (seen in purple) before we see another shake out. 

I have a couple good articles on Gold, and Silver manipulation, I'll share some other time.  

Looks like the DOW is going to break out at the open, putting the next target on the table. 

Oh yeah, Energy! 

Looks like it's already overshot the target. Just waiting for the reversal. 

$DJUSEN (Energy) LT chart - with stophunt added to the public charts 

I'm also looking at shorting Japan here, so watch for those charts, soon! 

Good luck, AA 

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