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Friday, January 7, 2022

Market Update 1/7/2022 - Rug was pulled on the NASDAQ

 This is after the fact, but something to watch in the future: 

Yesterday, I showed how the NASDAQ broke the chart pattern, and called the resulting plunge, a "mini flash crash". 

Well, it turns out that the rug was pulled at the open, when the 50 day moving average was taken out, and that explain the panic selling. Has nothing to do with Russia, China, Covid, or the Fed. Just a routine shakeout; a bear raid. I can't complain, because it worked out well for me.  

$COMPQ - this is the chart I told you to watch, at the end of yesterday's update. 

This looks like the biggest 3 day pullback in tech, in nearly a year, as the NASDAQ gave back 2 weeks worth of gains! "The market takes the stairs up, and the escalator down", as they say, and so much for that "Santa Clause Rally", CNBC. 

I also took profits on my gold miner short, which may have been a little early, but it was a good run. 

So, it seems we're getting back to better trading, and actually looking forward to 2022. 

I"m thinking we could see a big rotation out of energy again, and back into tech. Energy was up over 8% this week, something that the financial news networks, have managed to keep quiet. Who do you think orchestrated the sector rotation into energy? 

$USO (US Oil) - Looks like a bearish snap-back rally to a lower high (A-B-C). the Stop Hunt is 55. 

I'd like to sell the leveraged Energy bull $ERX, right here, so I'd swing trade into the $ERY 

Take Care, AA 

P.S. Financials looks very toppy, so that might also be another good short, or go long 20 year treasuries. There's no way interest rates are going up!

P.P.S. This update was delayed until mid morning, on Friday. Looks like we may have to wait until next week for the snap-back rally, I predicted yesterday, and that may continue in to Jan. OPEX; Another truncated week, another bear trap.   


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