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Monday, December 5, 2022

Weekly Wrap-up & A Look Ahead

Last week was phenomenal trading, as I stated in the Weekly News Letter - and that trend continued even into Friday, where I found myself up 26%, in my Natural Gas short! Best week I've had in several weeks, and I'm not even trying that hard.... 

China 

As I mentioned in my previous update, China continues to gap up, on the same old news, that covid restrictions may ending... but China has led the entire rally from the start, and it just seems like the western media has had a hard time reporting that.

Look, money has to go somewhere, and where most of it has been going is China, and that's because that's where stocks had been beaten down the most, whether covid restrictions are really ending, or not.   

China has gaped up several times, over the past 30 days, in what can't only be described as a vicious short squeeze.  

As a result 3X Leveraged China Bull $YINN has doubled since Oct.  

Now comes the media frenzy, right on schedule:

 

Morgan Stanley upgrades China stocks as global investors cheer on Covid reopening hopes cnn 

These Are The Top 5 China Stocks To Buy And Watch Now investors Business Daily 


Now that Chinese stocks are being unloaded to Joe Public, I want to be on the side of the smart money, that is no doubt taking profits, as they control the media narrative. 

You gotta figure it's going to take a couple weeks, for the narrative to switch to bearish China, so perhaps we don't begin seeing much downside, for a couple weeks? 

$CZH China - adding this view to the public charts area, so investors can see, just how corrupt the corporate owned MSM can be. 



Gold

Another trade I don't like is Gold, after it managed to take out the 1800 level, last week. 

The thing to watch is the $USD trading at 104.50 

If you see the $USD start popping along with the $VIX, then we could finally start seeing the beginning of normal trading, but as of Friday, the powers that be remained hell bent, on selling the $VIX, while holding markets up, into another (weekly OPEX) Friday.  

I think there's a good chance we could see a run for exits, ahead of the next fed meeting, and the extended holiday, which starts with Hanukkah on the 18th.

The only other option I see, is that brokerage houses are planning to defer paying taxes on their Energy trades, and whatever else they've made a killing on, until 2023?  

But I think gold is harder to manipulate than US tech stocks, and the $SPY, and the $VIX 

I'm thinking, Gold, and Silver, could collapse, with China.... but we'll have to see how things play out over the next couple weeks. 

Take Care, AA 


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