Market Update 1/24/23 - Technical Tuesday

Technology Stocks continue to lead

 Tech continued to lead on Monday, despite CNBC Fast Money's bear story, so what do they do? They flip flop, and turn bullish on tech. I DVR'd the show, so I could listen while I made dinner, last night, and I could hardly believe my ears...! 

Funny, the longer stocks rally, the more people get bullish, or at least the talking heads do. 

Volume 

We finally got some decent volume during yesterday's session, now that the powers that be have returned from Davos, but I also attribute the higher volume to short covering.  

I only mention the volume, because I heard it reported on Bloomberg... but of course they try to attribute this to investor (bullish) conviction. They don't even take into account, the pent up energy... post Davos, or the fact that Monday's are prime time for short squeezes. 

Now, some of you, are probably thinking, "short covering rallies are on low volume", but when buyers come in, and chase the shorts out, you end up with twice as many buyers. BOOM!   

Also, we're only talking about 1 day, and 1 day, does not a trend make. The volume on Wayfair was huge, so should I believe that investors have conviction on that trade?   

In case you missed it! 

I gave away a juicy sell target - on $SOX - yesterday 

$SOX - this is all you get for free, a one way ticket, on a 15 min. chart. 

$SOX makes a new recent high. Sell that pic.twitter.com/fMt8D3p1j4

— Veteran Market Timer (@3Xtraders) January 23, 2023

Related Story (intel investors): 

Oct, 27, 2021 - Intel Targets a 30x Total AI Performance Gain by 2022

As you can see, all the hype around chip makers cashing in on AI is nothing new  

Another thing that's not new, is that Intel, and NVIDIA are market leaders, so of course investors get excited when they see one or the other, leading.... 

 INTEL: 1. It was bought at the 50 day moving average on Short squeeze Friday. 2. It tested the Jan high yesterday. 3. It's been trading in the same range for the past 5 months. 

$NVDA (NVIDIA)  - 1. Technical breakout above the neckline, on a bullish inverse H&S Pattern. 2. Golden Cross taking place. 3. Adding this chart to the Public Charts area, for your amusement.   

Crypto  vs Gold 

 I watched Jim Cramer make this ridiculous argument yesterday, and he points to the fact that Gold has led the rally, as tech has sold off, paraphrasing. 

Look: 

1. Bitcoin has traded from 15,700, all the way back to 23k., over the past few months. That's a 50%

 gain!  

2. Gold has traded from around the $1600 level (1618.30), all the way back to 1939.00, for a gain of 20%.

FACT CHECKED AND PROVEN TOTALLY FALSE!  

As I've said before, I believe Cramer is working for the Deep State, and the Money Printers, but

I'll leave it up to you, to decide, what Cramer's motivation for painting a false narrative is  

I gotta run, and add some new charts to the public charts area... 

   

Take Care, 

AA 

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