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Wednesday, April 12, 2023

Market Update ahead of the CPI number

 Market Update ahead of the CPI number 

In case you missed any recent updates; the $SPX continues to trade in a tight 90 point range, while certain sectors continue to be pumped, at random. 

The latest.... being home builders. 

Spotted this just by chance; it's not a sector I follow very closely: 

If you caught the CNBC fast money show last night, then you saw them all declaring victory on that trade, and they've been planning it for what seems like several weeks now.  

These clowns are either trading home builders, or casinos, because these are thinly traded sectors. Easy to manipulate. 

Look, I don't wait around for several weeks, waiting for a market to be pumped, but I did spot a swing trade in financials.  

Funny I saw #SwingTrading trending on Twitter this morning, and added the following description: 

Financials 30 min chart

This is what I do. I buy the dips, and sell the rips, and if all goes according to plan, I make money on the round trip, rather than just hoping for the market to move in one direction, as most traders do... 


I made a major breakthrough on gold yesterday, after performing a little extra charting, after the bell. 

$GOLD - explains why gold has been bought hand over fist, over the past several weeks! 

Of course no sooner than I tweeted the chart, the gold bugs were liking it. 

I'm not going to give away my Gold targets, but I can tell you that the above chart isn't as accurate as it looks. 

The broader market 

The broader market continues to trade like crap, as expected this time of year, but I'm a little afraid of what may come next. All this weakness on a heavily shorted $VIX isn't bullish. 

Hopefully we start seeing more direction; either on today's CPI number, or as traders return from holiday over the next several days. We could see one sector or another targeted, and we're already seeing some weakness in tech. 

My best guess is traders return and drive stocks to my upside target, only to pull the rug out. Could be a Monday morning surprise, followed by a technical Tuesday, who knows..?  

Bitcoin & Crypto in the news 

 Yesterday, I caught the fake news pumping crypto; after ignoring the space for several weeks, even as Bitcoin rallied to 30k. Now they claim that it has decoupled from tech, and become the safety trade ("like Gold"), and they even had a fake (bullish) Bitcoin chart as a lead in to a bullish guest. 

I think it's not hard to imagine what comes next.   

Let me try to recreate the bitcoin chart, I watched bloomberg's Matt Miller draw in real time 

Looked a lot like a bullish channel 

Crypto’s Next Ethereum Upgrade Lets Stakers Roam Free bloomberg

Take Care, AA 

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