Yesterday, futures were up quite a bit, but - once again - the rally was immediately sold.
We finally took out the DOW 36k target, but I think we need to close above it, in order to create headline risk, going into the weekend.
Seems the market makers are saving their ammo, for a relief rally, on the Fed announcement, Wed., or the day after (if a relief rally is delayed) which seems to happen a lot.
So let's talk about the fake news of the day, and look for an alternative trade:
The QQQ's
We saw the $QQQ top out, and paint a doji reversal candle, and futures are red this morning. Also Tesla is down 4% now that the geniuses are finally realizing that there is no Hertz deal.... Barrons and several other outlets reporting it.
$QQQ - trades to the upper end of the range. It it breaks out here, then the purple pattern line, would become a pink support, or stophunt. If you don't know what a stophunt it, you should google it.
Fake News tries to take credit for the big move in Harley shares.
You probably heard it being reported yesterday, that Harley Davidson made some big deal, and that accounted for the stock being up? Wrong.
$HOG - Finds support the 200 week moving average, and rallies back to the 50 week moving average.
That was a technical move, and sure, the news was used as an excuse (for insiders) to spike the ball, but I could have told you to own $HOG weeks ago. I've been following $HOG since 2008, but won't bore you with the chart.
Yesterday, some nitwit on Twitter was pestering me about the fundamentals on Natural Gas, as if this is what really moves markets? This morning you see NatGas rallying - based on on my technical analysis, not the "fundamentals".
Money printing is good for commodities, in case you haven't noticed, over the past year, and a half. You're blocked now, for being a pest.
— Veteran Market Timer (@3Xtraders) November 1, 2021
If you like risk, then trade NatGas. I think it could pull back one more time, before seeing another nice rally.
$BOIL 3X NatGas Bull
Now, what about the Fed news, on Thursday?
The Fed announcement removes uncertainty from the market, 95% of the time, and that is used as an excuse to sell the $VIX, and squeeze the short sellers, so keep some powder dry! Don't trade into the Fed announcement 100% Net Short. Practice proper money management.
Wheat?
This morning I heard Bloomberg report that "Wheat has broken out to 8 year highs". Wanna trade Wheat contracts? Sell this rally...
$WHEAT - in a 14 year bear market
I've saved the best for last, and that's the short Bitcoin Trade. $BITI
It's on the Toronto Exchange, so I can't even buy it. Maybe you can?
Direxion also plans to launch a Bitcoin bear fund! (decypt.co)
If you can trade $BITI I would buy it this morning, and watch for the charts to be added to the public charts area.
Good Luck, AA
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