I could have entitled this blog: "Wall Street Gets It Wrong Again!", after seeing what's happening to Chinese Internet Stocks, not to mention Russia... and now Oil? How dumb is Wall Street?
China Headline Dec. 14th, 2021:
Wall Street Gets Increasingly Bullish on China
Goldman strategists join JPMorgan in bullish call on China bloomberg
BUT WAIT! It was not that long ago, that financial fake news network CBNC was seen marketing Chinese junk like Alibaba, to unsuspecting investors!
There was a time to be bullish on Alibaba, for a trade, but it takes a special kind of stupid to invest in Communist countries.
A prediction from almost a year ago:
Sell this POC too. No more Chinese junk for $1. Only #WWIII to look forward to. $DG pic.twitter.com/lcuHECcfPo
— Veteran Market Timer (@3Xtraders) April 1, 2020
$BABA (Alibaba) - red-arrowed in Oct 2021
Have you once heard CNBC retract all the pumping they performed on Chinese Internet Stocks. How about Jim Cramer...? "Oh sorry, we were wrong when we compared $BIDU to google?!" No! These people have no shame!
$BIDU - support breaks at my red line - investors robbed.
Today, I see China the same way I did in 2015; Should be good for a trade, as the short sellers cover ahead of the summer, and since a fool is born every minute; money managers will be forced to invest in Chinese junk.
$KWEB Chinese Internet - Strong Buy. Could take several months, to more than a yea, to test the 200 day moving average; Not for the impatient, or the faint of heart.
I'll be adding that chart to the Public Charts Area, as soon as today.
Oil and Energy
Looks like I was right again, when I warned investors not to chase the ridiculously overbought oil trade, it can't even be compared to the run up in '08. It's beyond dumb; It's more like a reddit trade.
$BRENT - Pulls back to my Target. That didn't take long, at least! Now I want to be a buyer of oil!
Could even pull back to the $93 level - the breakout point.
As you can see, the above trades have no basis in reality, and this is why I trade technical targets, rather than fake news, or so called fundamentals! This is also why I got away from trading, for a little while, after the market continued higher, in early 2020. I know a rigged, and overbought market, when I see it! I only returned in 2021, in order to find the top...
One thing I've learned trading over the years, actually 2 things:
1. I think you can never become overly cynical, when it comes to markets.
2. To quote one of my favorite lines from the movie Scar Face, "never under-estimate the other guys greed!
A Death Cross!
I pointed this out in yesterday's trade, and of course the idiots at CNBC were seen pointing to it this "death cross", this morning, because they seem to follow everything I do, and say, and I suspect every trader over there is bearish, which would be a great contrarian indicator!
$SPX - yesterday's chart - the "death cross" sounds spooky - for what that's worth - but it's a lagging indicator (a dud). Kind of like the "bear market" classification, the lame stream media uses, to try to scare investors.
The level to watch is the 4200 level. $VIX was only up 4% today. Just enough to keep investors on edge pic.twitter.com/dwIFpKiDE7
— Veteran Market Timer (@3Xtraders) March 14, 2022
Good Luck this week, AA
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