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Saturday, November 27, 2021

Taking A Close Look At The Black Friday Pullback

From a blog not too long ago, you may remember "a one day sell-off, does not a trend reversal make" (link).

Looks like the powers that be, took advantage of the light trading volume - on Black Friday - to take Oil down, and back-fill some gaps, which were left behind back in Oct. Of course CNBC and the other Fake Financial News Networks used the new Covid variant as the reason global markets sold off, but they have to drop a news bomb in order to help panic investors.       

$INDU (The Dow) - typical gap fill target - bullish  

The $VIX broke out slightly higher than the red line targets, that I threw out there in Wednesday's update, but that's to be expected on a full blown bear raid. Regardless of the $VIX strength, we didn't see selling accelerate, into the close. In fact I covered most my short bets, and put some money to work, and took the afternoon off. It wasn't until Saturday morning - the time of this update - that I realized I had left the computer on.

Most the damage was in the Oil market, and it's no wonder, since the globalists are freaking out over inflation. I suspect the big banks, or even the IMF was behind this cowardly holiday shakeout, but who knows...?  

$VIX - continues to trade in a massive bearish channel. 

$SPX support still looks like 4545, The previous high. Not sure we'll even see that level tested  

$OVX (Oil $VIX) - If you're going to buy the dip in Oil, then you're going to have to watch the $OVX. 
I looks like it already topped out on Friday, and that's where I alerted to the bottom. Now res. looks like 71.50. That's still super high, so we could still see some more choppiness, this week. 


Brent Crude Oil - after an 11% decline on Friday, I wouldn't be surprised to see it take a few days, or even weeks (of sideways consolidation) to get it's legs back. Support looks like $71. Still trading in a bullish channel. 

Technical support on WTI crude is the 200 day moving average (broke) @ 69.72, and the 50 week moving average @ 66.64, with an April 2022 target of 98.50 

It's easy to find those targets using any free charting program, and while you're at it, check out the moving averages on the $USO (US Oil Fund), and you'll see why ETF targets are less than reliable. 

Airlines were also taken down, and that was no surprise, and I'm liking the $XAL 100% more than the rest of the rigged market. 

$XAL (Airline Index) - finally pulling back to the target I laid out weeks ago. Shame the controllers need to push fake news stories, and take stocks down on a Black Friday, in order to achieve their goals.

Not saying the African variant is fake, but the powers that be have been pricing it in for months, and what happens in Africa stays in Africa. The Covid headlines are getting old.  


I suppose $JETS is also a buy, but I can't seem to find the chart. 

$USD - this reversal was no doubt a surprise to some traders. This is why I say the African variant news has been priced in for months. The $USD is the real safety trade, not gold, and why has the fake news been ignoring the dollar strength? Did the people behind the scenes have something to hide...? 

There was a time - not so long ago - when I used to looks at the charts - in hindsight - and ask, "do the charts predict the future", because this certainly can't be coincidence? But it's just that most news is manufactured, and like most of what we see reported as "breaking news", is engineered. Climate change, engineered. Covid crisis Engineered. Even the Virus itself was created in a lab.  

CNBC started the day - on World Wide Exchange - covering for the sellers by claiming traders were going to be away from their desks, but "the machines" were going to sell the market. Believe me, machines didn't start manipulating markets in Europe, in order to take US futures down. This was a coordinated effort. 

$RUT - nice take down 

MicroCaps - down 4% for the week, yet still being propped above support - above the top of the channel. 

Betting stocks are going to break down, and sell-off into the end of the year is utter foolishness, but looking at the above chart, Wall Street will have a real reason to sell, in 2024. It will probably be another manufactured reason, like Trump winning again, or a giant asteroid purposely directed towards earth. They're already developing the technology....  

Another thing to watch is the Stoxx 50, trading above the stophunt (my pink line), @ the 50 week moving average. In a real market crash, these stop-hunts will be taken out at the open, as we saw during the covid shakeout 2020. 

Take Care, AA


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