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Wednesday, December 22, 2021

Market Update 12/21/21 - The Shakeout, before the Breakout

Today is Wed, 12/22/21. I started this update on Tuesday, after we saw, yet another, Monday morning shakeout, in Oil and equities.   

The Monday morning shakeout routine is getting old, and it's really more of a racket - as in racketeering - than a routine. Normally, you don't see markets tank on a Monday, and especially on light volume. In the past I would just chalk it up to another unpredictable move - on light holiday volume - but in hindsight, I'm - once again -  left  connecting the dots.   

I watched a few minutes of CNBC's World Wide Exchange - Tuesday morning - and the first thing they reported is that, "the DOW sold off 700 points!", as they showed the intraday action in time lapse. Pretty scary, right?     

700 points on the dow, may sound like a lot, and that would've been considered a big move, back when the dow was trading below 20,000, but the truth is, that the Dow only closed down 433 points, or 1.23%, and who watches the Dow, anyways? Joe Sixpack, of course. When you hear traders talking about "shaking out the weak hands", this is who we're talking about.     

2. Next, they (CNBC), have one of the Najarian brothers on, who looks like he'd been up for 3 days - on a crack binge - rambling... something about the $VIX, as if he knows something. I had to change the channel, at that point, because I'd already seen enough.... 

I only watch enough CNBC to get a feel for what the enemy is up to, and that includes the fast money, TV traders. 

Now, I don't have proof that CNBC, and their traders, are involved in racketeering, yet the circumstantial evidence... continues to pile up! 

For instance: Look at this recent headline from Nov. 30th, 2021 -    

Dow finishes 460 points lower in major reversal triggered by first U.S. omicron case (CNBC)

Look, if there had been a "MAJOR REVERSAL", back in Nov., we - as experienced traders - would all know about it, so we know that headline is fiction, but what it the purpose of trying to scare the small investor, with fake headlines?      

The motive for manipulating markets is obvious; money. But for TV traders, who also have a system, and books they're selling, they have another incentive to conspire to manipulate markets. Reputation, notoriety, fame What about ratings? Is it any wonder that Jim Cramer would pull multiple publicity stunts, in order to draw a larger audience, or to spur animal instincts, or to push a political narrative, if that's their hidden agenda? We know the deep state is every bit as corrupt, as the corporate owned media, including these fake financial news networks. 

I see Cramer trending on Twitter, and stealing the headlines every week, and have to wonder, do these idiots (today's average investor) not see they're being played, by the court jester of political opinion? Are they unaware that CNBC is fake news?      

Jim Cramer: The economy is ‘a juggernaut’ now, headed toward post-Covid ‘boom’ (CNBC

CNBC's Jim Cramer doubles down on belief that government has the 'right' to force citizens to obey vax-mandate (FOX)

Cramer expects omicron-related stock slump to be short-lived, so he’s putting cash to work (CNBC

CNBC's Jim Cramer announces he tested positive for Covid-19 (CNN)

What about their many conflicts of interest...? You are aware that CNBC is owned by NBCUniversal, Comcast, and GE, right? Source

GE's CNBC Purchases a Stake In Aspiring Electronic Exchange Sept. 15, 1999 (WSJ

That's the same GE, who had to be bailed out in 2008, thanks to their risky lending practices! 

The same GE, who was accused of fraud in August, 2019 (USA Today

The same GE who continues to sell technology to Iran...? Many sources; Google it!   

Is it any wonder that Trump's Iran policy was bashed by so many corporate owned media outlets? 

American companies - including GE - are paying the price for Trump's Iran policy (CNN) Well boo-hoo! 

More conflicts of interest 

CNBC Imposes New Rules On Trading by Employees

...Maria Bartiromo, interviewed Sanford I. Weill, the chairman of Citigroup, after disclosing that she owned 1,000 shares of the company's stock." (NYTimes

That's the same "Sandy Weill", who was at heart of the banking deregulation, which helped cause the financial crisis of 2007-08! 

And then there's the eternal meltdown of the GE Fukuyama nuclear plant, which continually spills radioactive waste into the ocean, to this very day. Do you believe that eco-catastrophe was accurate reported? See

 Tracking contaminated water from the Fukushima nuclear accident (


Federal Appeals Court Dismisses Case Against GE Over Fukushima Disaster  (

And what about the apparent conflict of interest between "Steve Burke, Chairman of NBCUniversal - the parent company of CNBC - is also on the Board of Directors at both Warren Buffet's Berkshire Hathaway and JP Morgan."  (reddit)

With so much corruption, and so much conflict of interest, on such a grande scale, it kind of makes a surprise shakeout on a Monday, on light holiday trading volume, seem almost insignificant. 

But I digress! 

So, knowing that the corrupt bastards only care about one thing, and that is to drive tech stocks even higher - because minus a few over-bought tech stocks, there really is no bull market -  I went directly to the NASDAQ chart, and this is what I found. A little shakeout at the lower end of a parallel channel.

$COMPQ - NASDAQ - I've circled Monday's action, after drawing a simple bullish parallel channel line - seen in black. Is it any wonder that CNBC is pointing to the sell-off on the dow, instead of the only market that matters to these people (tech)?  The larger channel is expanding, or broadening. slightly. 

Of course the selling started in Germany, when the rug was pulled out (below the 200 day ma) and I'm certain CNBC, and the Najarian bros. know - some of the people - who were behind it. 

Also keep in mind this shakeout came only 1 day after Dec. OPEX, and whoever purchased call Options on Monday, is already winning. Funny Jon Najarian didn't mention any "usual options activity" , when everybody knows that's his only indicator. He basically follows the smart money - as he calls it.     
Getting back to the $VIX

The $VIX didn't break out to a new Dec. high, not even close, and the selling volume was not super high."Omicron", wasn't the reason for the selling on Monday. In fact, once markets opened, there was no panic selling.

$VIX 10 min chart. trending lower. Think I'll add this chart to the public charts area. 

Oil - We did get our pullback in oil. ChaChing! 

China - Seems like everyone is getting on the bullish China bandwagon now, which I don't like, but I can't argue with the chart, or yesterday's bullish reversal. I added to the $FXI chart back to the public charts area, yesterday. 

Gold - gold is interesting; as it's traded into a bearish H&S on the short term view, but last I checked it had broken out above the 200 day moving average. I wouldn't trust the (bearish) pattern, considering that we're trading into a holiday, and this is typically when short squeezes happen. 
I've added the $GLD chart back to the public charts area.  

And finally 

NatGas  - remains in a bull market, even after the rug being pulled out in Nov. Support is the 3.40 level 
 - the previous high. 

Take Care, AA 


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