Page menu

Tuesday, January 11, 2022

Market Update 1/11/2022 - The Big Reversal in Tech Stocks

Just as predicted, we saw a big reversal in Tech, after yesterday's, (yet another) "Monday morning shakeout". At this point, the Monday morning shakeouts are recognized for what they are - bear raids - and I used it as an opportunity to add to my long positions. Again, 2022 is turning out to be a great year, for me, personally, so far. 

 Furious Rally Sends Nasdaq to Biggest Rebound Since March... bloomberg

Around mid-day I was watching bloomberg, when one of the hosts asked a very intelligent question, " do we know who's behind the selling"? 

Maybe it was the Najarian Brothers (again), or any of the other former gangsters who you will routinely see featured on CNBC.

I can't say for sure who's pulling the Monday morning shakeouts, but I recognize a bear raid when I see one, and this one was easy to spot. 

Side Note: There's a fine line between, catching a falling knife, and recognizing a little bear raid, for what it is, and unless you know how to spot the difference - using technical indicators (including charts) - then you're going to be better off sitting on your hands. 

As I tweeted yesterday morning: 

The bid on the $VXN was raised in order to take the NASDAQ down. Wish I could show the chart...

If you can chart, and know what to look for, then at least you knew where to start... but I try to keep certain charts close to my chest. 

I can show you a couple of examples of how the rug was pulled on the $SOX index

$SOX -  Technical support levels being taken out on the 10 min chart, isn't a coincidence. These are well coordinated bear raids. 

It's actually good to see the $SOX bulls get shaken out, even if these are relatively tiny moves. 

Something we still haven't seen, is for money to come out of the energy trade, but I am watching what looks like a topping pattern develop in the oil and gas drillers. 

If you're interested in the energy charts, donate at least $100, and request them in my twitter feed. 

A final word: 

If all you're trading in 2022, is the $SPX, then I'm afraid you're going to miss out on some explosive sector trading...  

Later, AA 

No comments:

Post a Comment