In hindsight it looks like the Fed gave the market makers what it wanted on Friday, which was used as a good excuse to retest Monday's lows, and collect on their bearish (weekly) Options bets.
I probably should have seen this coming, since fast money traders, and the lame stream media were all calling for the same thing.
What I found interesting is that Powell spoke first thing in the morning, and so Germany was the first to go, and once the $DAX broke below the 50 day moving average, it was all over.
By the end of the day, they had taken the Dow down, and even 1000 points, so you know that was coordinated. It makes good headlines.
They managed to drive the $VIX above Monday's high, and that's pretty impressive.
At least I wasn't long, and I never told anyone to buy Thursday's rally, so I don't feel like I missed anything. I wouldn't have wanted to get locked into 3 day short trade (with cash) going into this weekend anyhow.
This coming week looks bullish, as we close the books on August, and trade into the end of the summer next week.
Volume remains super light so you certainly don't want to be caught short here.
There's a chance that we could see more weakness on Monday, but this only looks like a much anticipated pullback.
If we see the selling accelerate, then we'll have to regroup, but the chances of that are slim to none.
As it turns out the China bulls still managed to get paid on their bullish Option, as the Golden Dragon held the 50 day.
$SPX - continues to trade above 4000. Friday's selling was very orderly, and only looks like a pullback, possibly in minuette wave "iv", of C, in a bear market.
I also think we can also see FAANG stocks, tech, and biotech rally
$NBI Biotechnology
Good Luck, this week!
AA
P.S For your reading enjoyment over the Labor Day Holiday, check out:
The House of Rothschild, the Freemasons & the Federal Reserve Cartel theeventchronicle.com (linked)
The Suppressed History of American Banking: How Big Banks Fought Jackson, Killed Lincoln, and Caused the Civil War Paperback – September 17, 2016
The Creature from Jekyll Island: A Second Look at the Federal Reserve Paperback – January 1, 2010
Rule by Secrecy: The Hidden History That Connects the Trilateral Commission, the Freemasons, and the Great Pyramids
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