Surveying the Damage After Yesterday's Selling
I'm going to refer to yesterday's sell-off, as "selling", because it's pretty obvious to me that those who sold yesterday's CPI number are not investors, but pro traders who upon returning from summer break, had already decided it would be cute to take the $SPX down below the 50 day moving average, and trigger some sell orders, and this is exactly what they did!
The lousy Inflation number was a good excuse to rob investors. This is what #Wallstreet does best
— Veteran Market Timer (@3Xtraders) September 13, 2022
I suspect they've been planning this for at least a few days, because of the way the $VIX buyers were seen jumping the gun, and pressing the 50 day moving average, on Monday. Thankfully the market wasn't taken down on Monday, or I might have been left holding the bag, but as I explained on Twitter, I was already leveraged (short), when I took profits....
took 24% profits in $FNGU 3X #FAANG bull 👏
— Veteran Market Timer (@3Xtraders) September 12, 2022
Getting back to this engineered sell-off
$SPX taken down - precisely - just below the 50 day ma. Think the corporate owned main stream media - with all their technology - doesn't see this for what it is, a shake down?
This is so obvious, yet nobody on the corporate owned media will even touch it. Instead, they continue to fan the flames, of ever increasing, interest rate hikes, in an election year? Preposterous!
The idea is that if inflation is high, the fed will start raising rates, at a faster rate, and that's a good excuse for a taper tantrum, yet the $VIX - as I eluded to again in yesterday's updates remains contained.
Each time the market sells off on the same old news, and the $VIX continues to make lower highs. Yesterday, the $VIX managed to eke out, another slightly higher recent high, but fear is way below where is was back in May and June, were the $VIX was trading in the high 30's.
Review everything I pointed to in yesterday's updates and you should see what's likely about to happen next, and I would be betting on the house here, since every retail investor, and even as few hedge funds - who have been mostly wrong this year - is short.
The next chart - attached to my tweet - says it all:
So you're bearish with Sept. PUTS now? LOL pic.twitter.com/VebQp62Oac
— Veteran Market Timer (@3Xtraders) September 13, 2022
Counts like a panic wave "e" zigzag. 2. Looks like a broadening top.
Without giving away where I believe the market is going to be trading in November, I can tell you that the $VIX is the thing to watch, and even Karen Finerman at CNBC knows that much
$VIX is key. #FastMoney Karen F. got that much right #CNBC
— Veteran Market Timer (@3Xtraders) September 13, 2022
Where's the market likely going next?
Make a hefty - $100 - donation to this website, and I'll be happy to reveal my upside targets.
Of course the bears would like to fill the gap's left behind back in July, because they obviously missed the boat.
Someone on LinkedIn actually had the nerve to ask me yesterday, what I would buy in order to hedge against a market crash - suggesting 3X short tech ($TECS or $SQQQ) or some other nonsense - I didn't pay that much attention because this doofus obviously doesn't even follow this blog, or he would know where I stand....
For months I've been telling folks to sell the so called safety trades - Heakthcare/ Utilities/ Commodities), and to get over your fear, or you're going to end up broke, just like most every retail short seller I know did in 08, because the market didn't crash until we were all squeezed out. That ain't going to happen a second time, not in my lifetime!
This is what I want you to do with $TECS this morning
Take Care, AA
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