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Sunday, February 26, 2023

Weekly Wrap - A Weak, Ending to the Week, for Stocks

 Weak ending to the week

Looks like the short sellers - of the $VIX - lost again on Friday (weekly Options Expiration), with the NASDAQ finally being taken down below the 50 week moving average, and the $SPX closing below the sacred, 4000 level. 

I could show you exactly how they manipulated the $VIX higher, by pulling the rug out on the $SVXY, but I'm going tok eep that chart close to my chest.

More weakness 

Healthcare, which looked pretty good a week ago, was taken down below the 200 day moving average, while many tech stocks have hardly even pulled back from their recent highs?  

This worries me. Is Medicare bankrupt, or is the US Government about to default? 

Analysis: Looming U.S. default risk prompts investors to cut some debt exposure reuters 

That's right; the market is pricing in a default, months ahead of time! 

Good Trading Environment 

While most traders are no doubt getting shaken out on both sides of the trade, I've actually been doing quite well, and all 3 of my trading account hit all time highs last week! I don't say this to brag, but I'm genuinely excited. I won't even reveal which trades I was in last week, but I can tell you not to believe everything I tweet. 

The next big trade 

Thankfully, I'm seeing a nice setup for another sector trade. I even alerted to it in this weeks news letter, and made a 1 time special offer to reveal the trade to anyone who is interested, for $100, and I'm even willing to drop the price to $99, if that sounds better to you. 

And as an added bonus I'll even throw in another sector trade, and some $VIX charts, in order to ensure I keep you on the right side of history, as we trade into the end of Q1. 

Like I said in this weeks News Letter: You can't afford, not to take me up on this offer, and if you don't make a nice profit over the next 30 days, I'll even refund your money! 

Just use the PayPal link in the side menu. 

Golden opportunities like this just don't come along very often, and for all we know, this may be the best trade of the year. Take it or leave it, but act quickly, because you don't want to miss the boat! 

China - the controllers continue to peddle bad news. 

Didn't I warn you, when they reported that the recent rally in China was do to the end of Covid 0 (zero) policy, that that story would be short lived, and now you see Chinese stocks getting hammered, unmercifully, with the $FXI breaking below the 200 day moving average on Friday, and Hong Kong already down 10% for the month!   

Even the head of the CIA was seen warning on China, this weekend! 

I'm calling this a "good Chinese lesson", for dumb investors. 

U.S. to Expand Troop Presence in Taiwan for Training Against China Threat

CIA director says US is ‘confident’ China considering providing lethal equipment to assist Russia in war: CBS interview

So certain segments of the market look pretty awful, while others continue to hold up pretty well, but the broader market continues to trade in a range, and I believe this is by design, because    

One more thing: 

I saw the the clowns on CNBC Fast Money pointing out that the $SPX has tested the 200 day moving average on Friday. 

I don't know what chart they're looking at, but didn't quite test the 200 day, and that level could easily be taken out as soon as Monday morning! 

Take Care, AA 

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