Of course the market is going to rally on the first trading day of the year, and energy led, namely oil drillers. It was an easy call.
Moving averages will continue to drive every market. I find this kind of trading rather boring, but whatever works, I guess.
$USO - The chart below is a screenshot from my trading app - showing how the $USO was bought at the 50 day moving average, after being walked down to that level, last week. Totally planned, and rigged oil market.
$OIH - Oil drillers - ran to the 200 day ma - up almost 7% - ChaChing! It also broke out of a little bearish pattern, so I'd call this a little short squeeze. Next resistance looks like the 200 level, and finally 207 resistance.
Tesla was up over 13% - so another short squeeze. Sell that
Of course the chip sector was up 2%, and Apple is retesting the recent highs. Pretty much, everything that's already trading in a bubble, is being chased into the beginning of the year. Not too bright, I think.
Cryto mining seems to have caused much of recent gains we've seen in tech, and if you've been shopping for a new GPU (video card) recently, you know what I'm talking about. Prices have reached bubble territory, and not expected to come down until the 2nd half of 2022. The consumer electronics show is this week, by the way. Maybe that will help bring some clarity....
Gold reversed, and I think gold is trading in a wave D, in a sideways triangle pattern. 1800 is psychological support on gold, so if that breaks, it could trigger more selling.
$GLD - trading in a sideways triangle pattern. $GLD was snapped up at the 200 day, on Monday, another thing to keep a close eye on.
$GLD You'll find this short term chart in the public charts area. The right shoulder was taken out, leaving an abandoned baby behind. Looks like buy orders were triggered at the 200 day ma.
The $SPX is testing the 4800 level again, but not expecting a breakout. I'm sure the maniacs want the $SPX 5000 target, but I think that can't happen until April.
China pulled back yesterday, and it could be that we haven't seen the bottom there, but still looks like it broke out to me.
I think it's time to get short, anything except China, and wait for the weak hands to be shaken out.
If we don't see a correction by next week, then we'll have to regroup.
Take Care, AA
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