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Saturday, March 4, 2023

Weekly Wrap - Looking Back at Friday's Rally

Looking back at Friday's Rally 

Friday's action looked like a typical Friday short squeeze, and technically a 3 day rally, off the little shakeout we saw in the $INDU (Dow Jones Industrials), on Wednesday. I was just mentioning in Thursday's update that the Dow was leading again, and I even picked out some winners... and 90% of traders missed out, because they only watch the $SPX. 

In hindsight it was actually the $WLSH (The Wilshire 5000) which led this rally, after testing the 200 day moving average (precisely), and that can only mean one thing... foreign investors.

Here's some mind blowing history on the Wilshire 5000: 

  1. The Wilshire was founded by Dennis Anthony Tito, who is best known for being, "the first space tourist".
"Few people had ever heard of aerospace engineer and financial analyst Dennis Tito before 2001. That was the year Tito, then 60, became the first paying space tourist, cutting a $20 million check to Russia to fly aboard a Soyuz spacecraft and spend a week aboard the International Space Station (ISS)." time.com 
2. Tito worked as an aerospace engineer in the National Aeronautics and Space Administration’s (NASA’s) Jet Propulsion Laboratory, where he helped to plan and monitor the Mariner 4 and 9 missions to Mars. In 1972 he moved from astronautics to finance when he helped found the American investment firm Wilshire Associates and created the Dow Jones Wilshire 5000 Composite Index, a measure of U.S. securities markets. He is credited with having innovated the now-established use of mathematical tools, borrowed from his work in astronautics, to determine financial market risks. britannica.com
3. Has also flown on SpaceX's Starship, owned by Elon Musk 

Largest Percentage Holding in the $WLSH, just happens to be Apple, and it should come as no surprise that this was one of Friday's best performers!  


In Fact, 8 of the top 10 holdings in the Wilshire - including Tesla - are Big Tech companies! Source: Forbes.com 

So a former NASA employee, with ties to Russia, and Elon Musk, founded the Wilshire Associates. Nothing to see here! 

Here's another BOMBSHELL!

 There's now a leveraged 1.5X fund for APPL - $AAPU - that the controllers are using to pump Apple shares. BOOM!  

$AAPU was jacked (bid raised) at the 10 day moving average, at Friday's open.  


But wait there's more! 

$WEBL 3X Leveraged Information Tech, also jacked at the - you got it - the 10 day moving average.

Happily I was up +11% in this one, after buying the dip, earlier in the week!  


But wait there's more! 

No short squeeze would be complete without running small-caps up! 

$RUT - Russell 2000

$SPX rigged at the same point. See the 10 day moving average, on the screen capture below.



 At least the manipulators are consistent...   

I don't know about you, but the pieces are really coming together for me, on this Saturday morning! 

The Elephant In The Room 

The elephant in the room, is the fact that crypto was sold in order to raise the money to pull it off. 

 I didn't hear Fast Money even mention it, and I'm really not sure if it's because they have a poker face, or are those traders really so clueless that they didn't notice tech and crypto diverged for the first time in at least 2 years? I have to think they were in on it. 

The Bear Trap

First you have Morgan Stanley's Mike Wilson come on Bloomberg - Monday morning was it? - to help set the bear trap. 

This guy looks like the Mark Zuckerberg of the criminal banking cartel, figuratively speaking. 


3 day bear market rallies are common, as are short squeeze Friday's, and this one came ahead of a Mutual Fund Monday. This sets up for a Technical Tuesday to take back all the gains of the past week.

 I remember seeing identical market action to this, back in 2008, but at that time I think I didn't have enough experience, to realize how these types of explosive bear market rallies were engineered. I just looked for chart patterns, which I thought would help explain the market action, and hoped not to get caught in any bear traps, or Monday morning surprises, which seemed to be hit or miss, but these things are engineered according to a timeline, and every day I get better at predicting these things, and the manipulation is running so rampant, that it has become pretty east to spot. 

I suppose it's possible, that AI may even be using the Moving averages, as buy targets (as bear traps) and vice versa, also smart traders know that if - for example - the 50 day moving average is bought, that's going to trigger computer buying.  

Speaking of Manipulation

Speaking of manipulation, and not only the manipulation of financial markets, but of pretty much every aspect of our lives; it warms my heart to see people connect with what I pointed to in a tweet, just yesterday! 

This is the real "woke" crowd liking this 23 times! 

The people who control the corporate owned cable news, even the weather channel, know that fear & anxiety, is not only great for ratings, but it's a great motivator, when it comes to pushing a political narrative, or even a financial narrative, which is used in order to rob investors.   

I have plenty more I could blog on, and I didn't even get a chance to touch on the Energy sector, but today is Saturday, and I need some much needed R&R. 

Take Care, and see you next week, 

Thanks for reading 

AA


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