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Monday, April 11, 2022

Market Update 4/11/22 - Another rigged Options Expiration, Another Dollar

 Market weakness continues 

Whoever was trying to jack market futures up, Sunday night, clearly isn't paying attention to the $VIX which remains elevated, and trading above 20. 

$VIX - being bought at the 10 day moving average. Looks like algorithmic program trading....      

As I tweeted out last week, there seems to be a lot of res. on the $VIX around the 26 area, and I'm still expecting the market to rally into April OPEX, which coincides with the long Passover holiday. 

I know I probably sound like a broken record at this point, but every Options Expiration Date is rigged. 


Weekly  OPEX Friday: we saw Energy retest the recent highs, why? Because it was another weekly Options Expiration... and since the market is being rigged by the crooked banks, and their hedge funds, they had another big payday, even as every other market traded relatively flat.  

Energy actually touched a slightly higher recent high on Friday, but the only folks making money on this trade, are the big fish, who began pumping this sector, back in 2021. The big money is made in the totally rigged Options market.


Wall Street banks love these energy stocks — and two are on Goldman’s conviction buy list CNBC
Morgan Stanley: These 6 energy stocks all offer upside as ... - Feb 15th 

7 Oil Stocks Morgan Stanley Loves USNEWS Dec.  2020 

Morgan Stanley sees buying opportunity in energy stocks
Nov. 30, 2021 Globandmail 

I find it interesting that the work "Love" is used to describe these energy stocks Morgan Stanley is recommending. 

My recommendation is to never fall in love with a stock, or a trade. Separate your emotions from the trade.  

The big picture on Energy is that it looks like another false breakout, just like the ones we've seen over the past 10 years. But what makes this rally different is the velocity. 

LT Energy - 

$XOP  10 year (weekly) view - The price action throws over the top of an upturned triangle pattern. Looks like bearish capitulation, as they continue to cover their shorts ahead of the holiday. This won't end well for the bulls, I think. 


$DJUSEN 20 year (monthly) view Snaps back to erase all the losses since 2018, in less than 2 years. Compare the velocity and timeline to the rallies of 2002, and 2008. 



I believe that the reason the powers that be have piled into commodities, and commodities based sectors such as materials, and energy, is because they know the broader market, and especially tech is in a massive unsustainable bubble, and money has to be invested somewhere. Gold miners, and Oil producers actually have value, in a post war world, unlike a million other stocks. 

Gap fills

This will probably be the topic of the next blog update, as that's what I'm seeing on several chart views.

 It's just really irritating that the idiots had to drive the market as far as they did, before deciding to back-fill some gaps. At least I didn't get squeezed out of my short positions, as I'm sure many traders did.... but I basically only broke even. The past several weeks have been a complete waste of time, and that's a bitter pill, after starting out the year so strong, and more patience is called for as we trade into another rigged holiday session.    

Whistling past the graveyard,  


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