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Thursday, February 10, 2022

Lousy Trading Environment, but things could pick up shortly

 Looks like we've gone from a great trading environment, back to a lousy trading environment, in only a couple weeks. This is typical, after a big move, like the one we saw back in Jan. At least the lame stream media isn't still asking their bearish guests, "have we seen the bottom..."? 

We've also seen some big moves in NatGas. First we saw some ridiculous gaps higher (which I called "suckers rallies", followed by several gaps lower; giving back all the gains of the previous 5 days. 

I remained short, in fact I tripped down on my short bets, and did very well....   

The broader market has continued to rally... as predicted in the last blog. 

Yesterday we saw the short sellers squeezed out of several sectors, as the DOW was rigged higher, ahead of Disney's earnings results.   

$INDU - the bid was raised above the 25.6 level at the open, then Disney earnings... 


You have some big player in Disney, including the crooked banks, so expect a gap fill there. 

They did a similar thing on the NASDAQ. Raising the bid above resistance, at the open. This was pretty well orchestrated, but I didn't see any fake news, to speak of. 

$IWX  - Russell (Top Value) trades into a bearish right shoulder.  Something to watch. 

But why on God's green earth is Canada trading at all time highs? I'd say the Canadian Central Banks is rigging their market, just as the Fed is....  but the energy rally has also helped keep Canada afloat.  

$TSX Canada is the thing to watch. 

Analysis: Investors eye uncharted waters as quantitative tightening looms in Canada Reuters 

$SPX - the thing to watch is the 50 day moving average, if is manages to break out ahead of the weekend. Support becomes the breakout above the right shoulder, yesterday (4545 level). That's also where the 200 day moving average is trading, so we may be looking at another nasty Monday Morning surprise, on Valentines Day. You know what to do when that level breaks. 

$DJUSEN - Energy looks like it's set to crash, any day now. Look like another head-fake wave "B", propelled by the belief that there's is a super cycle in commodities. See my Wave C pullback target. 


So Energy, and Canada, are set to crash. Could take a couple more weeks to get going, I suppose, but the $VIX already looks oversold. What's it doing back below 20..? Watch for volatility to return, shortly! 

Take Care, AA   



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