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Tuesday, January 25, 2022

Market Update 1/25/2022 - Yesterday's Historic Rally

 I don't know how historic yesterday's bullish reversal was, but it did paint one of the most impressive bullish hammer (candles) I've ever seen on a chart, and on heavy buying volume, and by the end of trading yesterday, the market had regained support. 

And not only was I right on yesterday's call, but I've been right since I stated I warning folks not to chase the rigged US ponzi stock market into the later half of 2021. 

1. I specifically warned folks not to chase Tech stocks... 

Looks like a 300 target on the QQQ's? Doesn't seem so far fetched now, does it?  

2. I was also right on the top in Bitcoin, and the panic selling in Crypos spreading to the rest of the market.  See my Nov. 2nd, Update, in which I specifically told folks to "short Bitcoin". 

3. On Jan. 19th, I was right again on Russia tensions, being used as an excuse to sell markets. This was weeks ago, and only yesterday did Bloomberg finally start reporting on those "geopolitical tensions...".  

$QQQ   Daily Candlesticks Chart Revised - look at the historic volume! 


$INDU - This historic rally even extended to Dow stocks - again - highest buying volume in over a year. Seeing resistance around the 35k area (35.1) on a back-test of the 200 day ma.  


Now, make no mistake about it, the bullish trend was broken, and the NASDAQ $VIX remains in the danger zone, but it's always more dangerous to be a short seller, when the $VIX is running high, and targets constantly need to be revised... Yesterday, I had a hard time getting stock charts to load, and I still can't move charts between folders. I'm not sure if the stockcharts.com site was overloaded, or hacked, but I suspect the later... but I have at least 100 hours of charting to do, just to get caught up! As I tweeted on Friday, "many bullish chart views are broken", and can finally be deleted. This is a good thing, because instead of 30 probable outcomes, it can be narrowed down to say 20, or even 10...   

I'll leave you with a couple $VIX indicators, since these are the only way to measure real fear in markets. $VXN res. is 42.50, and you should hold tech stocks as long as yesterday's high, on the NASDAQ holds. Support on the $VXN remains (30). Once that level breaks we should see things return to normal. 

I have all kinds of $VIX targets and levels that keep me on track, such as the $VIX of the $VIX, which I see traders relying on more, and more, recently. If you would like some guidance on the broader market, I can provide you with $VVIX targets for a one time $100 donation to this website.  

I used to recommend that folks don't short the $VIX, because of the risk involved but I also have those targets. if you're interested. 

If you prefer to try to time the market, using only the standard $VIX chart, I'll leave the one in the public charts area, and good luck to you. $VIX res. becomes 35.30 


As long as the $VIX doesn't break out again - and I don't think that's likely - then the market can continue to rally into next month, and perhaps China can join the party, some time after the Chinese New year. 

Happy New Year, AA 





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