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Friday, November 5, 2021

Market Update 11/5/21 - The Market Bubble Continues

Yesterday we saw financials sold, and semiconductors pumped into today's Weekly Options Expiration. 

I just happened to turn to CNBC's fast money, as they were congratulating Jim Cramer, for pumping Qualcomm. This was apparently in the AM? The guy apparently never sleeps.  

Jon Najarian talked about the unusual call activity he saw in Qualcomm, so you know this pump job was planned ahead of time, and Cramer is also behind it. It's a good example of just how corrupt this market is, and how that abuse of power inevitably results in market bubbles. 

When the wealth of an entire generation is lost CNBC should tale a big part of the blame, for egging on modern day investors (speculators) like the stock market is a horse race! 

And Qualcomm was not the only Semiconductor used to drive the $SOX. 


$SOX - from the public charts area 

And While I'm talking about $SOX: 

Yesterday I found two different topping patterns on the $SOX:

1. $SOX  - looks like a triangle top, with a throwover in wave 5, which is common 

Here's the close up view.... 

2. $SOX  - looks like a broadening top - of course also in wave 5 - with can also fall short, but more commonly overshoots, the final target. Don't under-estimate the power of the coming bearish reversal. It should be explosive! 

Note: The stophunt on $SOX is 3550, so it's going to hold that level going into this weekend, for certain, and probably into Nov. OPEX, since that's the whole reason for driving this sector higher. 

Why is $SOX so important? Because it has led the bubble in tech for several years. I've been using this as an indicator, and talking about it on LinkedIn for a least 3 years, and until $SOX breaks, there is not going to be a bear market. This is the reason I have at least 20 active $SOX charts. Funny nobody else even seems to pay much attention to it?   

$SOX - another weekly view - How many more times can $SOX overshoot? I have no idea, but I'm starting to loose count... 

Looks like the $SPX could actually take out the the 4700 level, if it just holds up into next Friday 

The $SOX took out yesterday's target, and the bulls have not been putting much insurance on. Guess they were too busy pumping markets on CNBC? For that reason we could see some give back on yesterday's rally, or at least stocks should remain pinned at the top of this range. 

It took me a while to organize the $SOX charts, so I'm almost out of time. 

If you want to sell something, try Natural Gas. It seems the level of investor intelligence on the long side of the trade, has reached a new low. So much for those 8 year highs. You're stop should be set just above the 6.49 level. 


Good Luck, AA 

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