I was away from my desk, most the day, on Friday, but I still kept tabs on the market, and checked in after lunch, just in time to catch some fake news!
Bloomberg reports: "Market makes a new 2 year low" (paraphrasing)
$SPX falls to lowest level since 2020 Bla Bla bloom gloomberg. Not even true. #FakeNews @BloombergTV pic.twitter.com/f2d1zc2B0a
— Veteran Market Timer (@3Xtraders) September 23, 2022
I have no idea what chart view Bloomberg is using, but this fact checker is calling, Bullshit on that!
Does this look like new 2 year lows to you?
It was from about the time of that fake news report that the Market recovered somewhat - probably short covering, but possibly program buying - going into the close.
Without revealing any of my proprietary chart targets, I can tell you that we've only traded, from one bullish set-up, into another.
Another Bullish setup
We see several indices back-testing support, at critical moving averages, and since the market is being traded, mostly by machines, these levels are going to be bought in the blink of an eye, and with no regard to the fake news, or the $VIX. This is where you are going to see the boys separated from the men, so to speak.
Here's a stat you won't hear the rats in the financial fake news report:
The $NDX (The NASDAQ 100) back-tests the 200 day moving average, for the first time since the crash of 09, which marked the beginning of a bull market that has continued for the past 20+ years!
But there's more...! [edited for content because these targets are just too valuable to be giving away, free]
I wish I could show you the charts, but I'm no longer able to reveal my targets to traders who don't even support the cause.
Broken Charts
We did see several sector charts break, including Gold, Oil, and Energy, which was good to see, and this sure beats the summer doldrums, we've had to try to navigate, over the past several months.
We saw the rug pulled on the energy sector, as the $XOP was taken down below the 200 day moving average, to close the day down another 8%! BOOM!
Energy
I recall not too long ago, when the Fast Money clowns were telling retail investors how great the Energy trade was! Of course I saw this pullback coming, from a mile away, and made some good gains over the past couple weeks, trading it (short).
See: Market Update 8/30/22 CNBC Fast Money Traders Like Energy
Leveraged ETFs
We also saw some leveraged ETF charts break, which is great to see, because traders shouldn't be relying on patterns on these skewed charts anyhow. Maybe now we'll see less of that.
Getting back to the broader market:
As I predicted on Friday, there's a very good chance we're going to continue to trade the range, and here we are trading near the bottom of it, and on an even more bullish footing!
What I can tell you is that 2 weeks of selling into a double bottom, does not point to a continuing bear market, but more likely a pullback in wave (B).
Expecting a face melting rally in a powerful wave C.
Good luck Next Week, AA
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