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Tuesday, March 22, 2022

Market Update 3/22/22 - You gotta see this!

 The momentum of last week, plus the fact that this is window dressing season (at the end of the quarter), continues to hold the market up, but there's something else going on here. The $VIX is being sold (short) using a 5 min. chart view! 

You gotta see this! 

$VIX - 5 min. view - What's crazier than the fact that I sometimes check a 5 min. $VIX chart, is that anyone would be shorting the $VIX, using this 5 min. chart view!  

I'm not advising you trade the $VIX using a 5 min. chart, even though the short $VIX trade I called out a couple weeks ago has done pretty well. It's just that the leveraged $VIX ETF's ($SVXY) doesn't perform as well as it should, given the risk that volatility explodes higher. 

Yesterday, we got our doji candle, as the market ended the day flat, as predicted, but this morning we see futures higher? Not really sure what to make of this, except that the $SPX wants to test the 4520 level, on a higher $VIX. Next res. after that would be the 4545 level.  

China also remains stubbornly high, after last weeks massive short squeeze  

$FXI China 

I can't say why Oil and energy was higher yesterday, but I used that as a selling opportunity

$OIH - Oil, and Oil drillers - Watch for wave 5 to complete before the end of the month 

No sooner than you see inexperienced traders get bullish on energy, the bottom will drop out.

Natural Gas  

It's amazing to see Natural gas continue to hold up in the $5 range, when support is closer to $3 - $4 

I'm not going to reveal what I'm seeing on half a dozen natgas charts, but LT res. is 4.93. and we just saw a golden cross on the daily moving averages, around the $4.40 level. 

$UNG - Natgas fund - Short term it been trading in a range all month, and that will likely continue, despite the rhetoric coming out of Washington 


If what just happened to short sellers in the nickle market scares you - and it should - then you shouldn't trade Natural Gas, because this can be just as volatile.  

Usually Oil and Natural Gas run in opposite directions, but all commodities are in a bubble, and that is about to burst, in a big way, along with every other global ponzi market, I'm afraid.  

 Good luck, AA 

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