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Wednesday, March 2, 2022

Market Update 3/2/22 - Off to the Races?

I'm not talking about Oil and energy, off to the Races, but the sector rotation, back into tech and other equities  

Looks like there's a good chance that we're off to the races here. 

1. The $VIX remains contained = bullish 

2. The market has pulled back to a higher low  = bullish 

3. Window Dressing! MM's need to put some lipstick on this bloated (like a pig), market-bubble, Ponzi-economy, or millennials may stop contributing to their 401k's, and we can't have that! 

4. The only sector I've seen making fresh lows is Russia - not even the airlines.... 

Rerouted flights from U.S., Canadian and European airlines Source: Bloomberg 

All the MSM's hyperventilating over Russian aggression seems to have been nothing more than an excuse to take profits in the new year, and of course - to run cover for Joe Biden's failed Domestic, and foreign policy, not to mention corruption. none of which were addressed in last nights "state of the union speech. Did you see those phonies, all wearing blue and yellow, in order to distract from the real state of the union? Despicable, hypocritical, lying, career politicians, all of them! 
Lawmakers wear blue and yellow to State of the Union in nod to Ukraine politico 

Any news on why biotech has been hit so hard over the past year? No, nothing but, "radio silence", on that front! 

 $NBI - Biotech - is back above support, and looks like it wants to snap back in wave A of iv - or even primary wave 4 - depending on how you want to count the Elliott Waves. 

Looks like the powers that be are taking their time, loading the truck, ahead of the spring buying season, but the DOW continues to trade in the bottom end of the range, and can run all the way back to 37k in the same old pattern we've been watching stocks trade in for a year. 

New York stock exchange - same sideways pattern. 

Of course, as a trader, I want to sell whatever has ripped over that time, and buy the dips on whatever has been beaten up the most, and of course, this is what sector rotations are all about. It's like a game of whack-a-mole. Move the money over hear, then move it back. Choose the winners, and losers.... 

There's nothing on the up, and up, about this market.   They decided to sell Tech in order to run energy up, and they own the lame stream media, so continually rigging markets is easy. 


Goldman Sachs raised their target on Oil - speak of the devil 

I noticed something interesting in BRENT crude futures yesterday 
Brent Crude Futures - Look closely at the EWCount - in blue - counts like a wave 5, in an ascending, expanding, triangle, or channel!

And if you apply the same EWcount to the Brent Crude Contract (chart), it looks like it could actually retest the all time highs for Brent Crude Oil - close to $150. 

Another view of the same thing 

I think the only thing that really concerns me about that target is that the volume, has trickles to nearly 0, and as they say, "volume precedes price action".  

2. There's also the fact that that broadening pattern that looks like it could be wave 4 consolidation, could actually be the climax of the broadening top. 

I prefer my second thesis, and especially when I consider that the energy market has been used as a safe haven, by the manipulators. 

$USO - US Texas Crude Oil - strong sell  


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