Page menu

Wednesday, April 6, 2022

Market Update 4/6/22 - What Was I Thinking?!

 What was I thinking, yesterday?! There isn't enough time to get a correction completed before Good Friday, and light holiday trading actually starts next week, Monday. I'm looking to move to cash, and that's what I started doing yesterday, on the little pullback we're seeing at the moment. Look, we're not going to see the pro short sellers stick their necks out, going into a holiday, and the market will still be here in 2 weeks. "Don't trade during a holiday", is the best advice I can give. 

After all: The controllers saved their precious NASDAQ from disaster in March, and they aren't going to allow it to crash - at least - until selling season (May), and possibly not for several more months.      

$COMPQ - NASDAQ monthly view - See how the price action was driven back to overbought, above the top of the channel. That can continue indefinitely, and probably will.... knowing how rigged the system is. The market only sells off at certain times during the year, and this isn't one of those times...  

 Maybe we can find a trade somewhere else? 

Gold continues to sell-off, and I found a whale of a trade yesterday: 

What Are Whales Doing With Newmont

"Someone with a lot of money to spend has taken a bearish stance on Newmont..."

What's interesting about that article is that I only found it after 1st finding a topping pattern on the $NEM chart, and that was after briefly touching on gold miners in yesterday's blog.

Of course the 3X miner bear trades, present more risk than the averaged retail investor can tolerate, I like the risk/ reward. I crave volatility!  

I also know that the powers that be want nothing more than to crush the gold bugs, as they have been doing for decades. If you recall what happened to gold miners in the last financial crises, it turn out to be anything other than a "safe haven", and if Gold can't even break out when the economy is facing the worst inflationary period we've apparently seen in 40 years... assuming the stats are correct? 

Regardless of the fundamentals on gold, the trend is down, and we could easily see the miners cut in half before the end of the summer.   

$GDXJ (Jr Miners) - We're looking at Jr. Miners, because they have the highest fuel costs, plus the chart isn't as skewed as the rigged $GDX.     

If you trade leveraged ETFs then you should already know which fund to pile into. 

Of course there's a chance this trade doesn't perform any better than the short tech trade, but the corrupt power structure has no reason to hold mining stocks up. Quite the opposite! And judging my the article I linked to (above), the options market is bearish, and that (the timing...) is now working in our favor. 

NatGas hits $6 on short covering - ahead of the holiday  

On the one hand, you see the $UNG ETF break out above the long term channel, but you know how I feel about ETFs. ETFs - although highly traded - are skewed. They attempt to trade according to an underlying index, but that doesn't work too well over the long term. 

Of course, we all see what just happened to the LME nickle market, and there's always the possibility that the NatGas market could more than double in a day. Again, probably more risk than most traders can tolerate. I can tell you that NatGas is at resistance, and the only shortage seems to be due to stock piling. There really is no shortage...   

If you'd like Natural Gas targets to be sent to you in PM (Private Message) on Twitter, make a $100 donation to this website, right now. I can't guarantee that I'll be willing to extend this offer even beyond this week, so act now!  

Good luck, AA  

No comments:

Post a Comment