I wanted to delve deeper into the $NYSE flash surge/ crash, because there's finally some news being reported on the situation, but the whole situation is quite unbelievable.
Apparently an employee at the NYSE forgot to turn off the lights, when he left work, at the end of the day, and that caused a major system failure! You can't make this shit up!
I'm not sure which news room - if any - to trust, but some information is leaking out
NYSE Says Short-Selling Restrictions Responsible for Glitch barrons
Market Update Thursday 1/26/2023 The Waiting Game
The market continues to hold up - trading in a seemingly endless range. Some sectors remain trapped at the top of a range, while others remain trapped at the bottom of the range. Still others continue to make higher recent highs.
Gold Miners - for instance, rallied to another recent high, yesterday. This is where the scared money is hiding. They've moved from Energy, to Gold miners.
I alerted to this trade, in my Twitter, yesterday morning, and I have a sell target, if you need one! PM me...
#Gold Miners pull back. Probably nothing... $GDX pic.twitter.com/HoadFWVKGq
— Veteran Market Timer (@3Xtraders) January 25, 2023
Getting back to the broader market
The broader market has gone from trading in a bearish channel - or triangle - to trading into a sideways range, which is a difficult thing to predict, even for someone with my experience.
Canada -
for example - has been trading in a generally sideways range for the past 6 months!
Sure it's made a new recent high, but it's not like you can find a bullish pattern on the chart, and if you're still trading the broader US market, you're dealing with the same thing.
What's funny, is as soon as the Dow starts trading back above the 200 day, the bulls start asking, "does this mean this rally is poised to continue"?
This is what happens when markets hold up.... people become overly complacent. Just look at what happened, just ahead of the so called "covid crash", the market continued to tread water for an entire year, and everyone got complacent as a "breakout to new highs", was being reported.
Reminder 2019 - 2020
$INDU - market holds up - in a false breakout - for 14 weeks, just ahead of the covid crash.
Did they release the Covid virus, from a lab in China, in order to have an excuse to bailout the financial system, one more time? I can't say for sure, but it seems to me that the manufactured crisis was used for that very purpose, and all that unnecessary money printing caused commodities to inflate. Create the problem, create the solution, rinse and repeat.
How Long Can You Wait For A Market TO Roll Over?
14 weeks sounds like a long time to wait, but today we see the Indian market hold up for over a year!
$NIFTY - monthly candlestick chart
The longer the period of consolidation... the worse the correction is going to be, and this chart has been added to the Public Charts Area.
Waiting for the next black swan
It's getting to the point, where I think I need to start relying on longer term charts, to time my trades, and I've already moved towards this approach somewhat.
For Example: I finished taking profits - in tech - a couple weeks ago, and I'm just sitting on my hands and getting caught up on my charting, rather than going short - for example - $SOX. Now you see $SOX continue to hold up, with pretty-much everything else.
The $VIX
Like I said in my twitter yesterday, the bears can't seem to gain any traction, as long as the $VIX is going to be hammered back below the magic 20 level, and that's exactly why the manipulators do it.
Remember when I mocked the market bears for thinking that a $VIX below 20 was a bearish signal?
What About Energy?
Remember when I predicted that the Energy sector would continue to hold up, into the end of the year, and beyond, and that's exactly what we're seeing....
More waiting
Related Story
What about China?
China has rallied into the Chinese New Year, and you see that continue to tread water.
$KWEB - Chinese Internet - trades in a range - more waiting I'm afraid
As reactionary as Investors are nowadays, I would expect markets to move faster, but it seems like, more and more, they only move in one direction - sideways
Take Care, AA
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