Market Capitulation - Part 3
I could hardly wait to finish this blog over the weekend, after Bitcoin took out the target I laid out in Friday morning's update, but then I got bogged down writing extensively about #FinTwit (Financial Twitter) which is clearly a financial scam, being perpetuated against the retail investor, by a group of hedge funds. This explains why the most idiotic topics in the world, the worst stocks, and the worst charts, receive the most attention.
According to CNBC "#FinTwit, stands for financial Twitter, an online community that primarily uses the social network to discuss investing (August 30, 2019).
This truly is, "the age of deception" (quoting myself), and technology has made it possible to deceive the masses on a grand scale, indeed!
The level of financial deception I've discovered on Twitter, is so absolutely mind blowing, that it deserves a series of it's own, and since this series on capitulation began with CNBC pushing the idea that capitulation is necessary, in order to find a market bottom, and then seeing the same propaganda trending - by no coincidence - on Twitter, I've gone down a rabbit hole and I can't seem to crawl back out of! I've been writing all weekend, and after several attempts to break this update up, into separate parts, I'm only left pulling my hair out... and now here it is Monday evening, almost dinner time!
So, I plan to try to wrap up this series, before I expose Twitter, and Fin Twit, in another series. Believe me, you won't want to miss any of it, so please subscribe....
In Part 2 of our series on Capitulation, I mentioned bearish sentiment, and oversold indicators, and while it is important to see these indicators reaching oversold, and overly bearish, extremes, at a market bottom, the topic at hand is capitulation, which means a giving up, which is evidenced by a $VIX spiking off the chart, and a whoosh sound, as retail investors finally panic out of their positions. Even though, many times this process is a result of stop losses being taken out, rather than real investor fear causing panic selling. This is the reason you see the lower channel, I showed you last week, being taken out, just ahead of June OPEX, and another long holiday weekend.
Of course capitulation can also happen in a bull market, as the short sellers give up, and this is why you see stocks pumped to new all time highs, only to be dumped shortly thereafter, as we finally see happening in the energy space. Remember; this is all a game, to steal investors money. This is the real purpose of trying to cause capitulation, on both sides, and Jon Nargarian, and others like him, think retail investors are to dumb to see the oldest game in the book, coming from a mile away.
We DID see the market gap down a couple times last week, and even break critical support, but what we did not see is panic selling. We also haven't seen higher $VIX highs. We also see several markets rallying, while others are selling off. For instance Biotech was up over 6% on Friday! China also remains up, way up! I'll bet you never heard any of that reported, neither did we see these topics trending on twitter! But there I go again, and this is a topic for another series!
The fact that this doesn't look like you're typical capitulation bottom, and I've charted enough of them - in real time - to know exactly what one usually looks like, should document once and for all, that you don't need to see capitulation in the form of a final "WHOOSH" in order to find a bottom.
Of course, we saw this kind of capitulation, before the monster rally we caught in China, and we've seen capitulation in tech stocks, and crypto, but we have not seen capitulation in the broader US market, and I don't expect to....
Without getting too technical, the pullback we've seen over the past several months, has been very orderly, and I believe that's because it was totally engineered, by a corrupt federal reserve, working along side, the crooked banks, and their hedge funds. This is what hedge funds do after all, they hedge your loses. As markets sell off, they make money, and this is all planned months in advance, just as it was when Goldman Sachs started quietly betting against the US housing market, just ahead of the 2007-2008 crash. That's right: Goldman Sachs Secretly Bet On The Housing Crash (many sources).
More on the engineered pullback....
1. This explains why the fed has done very little to fight inflation, other than talk about it, and they remain way "behind the curve", and I believe there's a very good reason for that. They have no intention of further tightening! In fact quite the opposite. They will continue to print historic amounts of money in order to keep the (ponzi market) dream alive.
2. This explains why we haven't seen higher $VIX numbers, which would be a sure sign of real fear in the market, and true capitulation. Walking back an over bought market 3% at a time, while continuing to hammer the $VIX, doesn't count.... We know the market can sell-off more than 3% - in a panic - when the controllers allow it to, but this market was walked down, on a lower $VIX.
3. It was also their intent to take crypto markets down, and this is evidence by the public statements made by deep state scumbags like Hillary Clinton! I'll spare you, her tweets, but she lumps together Trump supporters, with crypto investors, and terrorists. I think most former government officials are smart enough to keep their mouths shut, when it comes to their true intent, but not crooked Hillary!
As I've already pointed out we've seen capitulation in China, Crypto, and Tech, and I have the charts to prove it. Highest selling volume in history seen in the tech sector last month! That doesn't mean we're going to see the same thing on the $SPX, and I think that point will be proven very shortly.
I think we could be off to the races as soon as tomorrow Technical Tuesday, but with this rigged market, a month is like a day, and a lot of the timing depends, on when the controller are planning to pull the plug again. You can bet that they intend to rally into the end of the year, in order to help the fascists regime, already in power.
I think there could be a speed bump, along the way, but this should be good trading at least!
Don't miss the next blog series in which I plan to expose the deception taking place, under the #FinTwit banner!
GL, AA
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