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Wednesday, April 19, 2023

S&P Futures Hit 2 Month High: 4,200 Looms As Record Bearish Sentiment Leads To Another Melt-up?

S&P Futures Hit 2 Month High: 4,200 Looms As Record Bearish Sentiment Leads To Another Melt-up

That would be a very bullish signal; if it were true; 

Market Sentiment Indicator: How It's Used in Analysis and Types investopedia 

I used to be able to trust zero hedge - as a reliable source - but as it turns out, this is just more hype, I found in my twitter feed, on Tuesday. That's right, the headline on today's blog is pure bull crap! 

Of course, sentiment is one of the key indicators that I monitor, and I had already debunked the bearish sentiment theory - I saw being pushed by the fake financial news networks - in Tuesday's blog.

 So, not only is zero hedge seen pushing a false narrative, but they also seem to be plagiarizing...  

What happened to zero hedge; were they sold to the sharks who control Wall Street? idk  

Anyhow, I've since blocked Zero Hedge, because I can get plenty of fake news from other sources. 

Yesterday's Market Action:

We saw futures up, followed by a gap up, at the open, but no sooner than the market tried to break out, it was quickly hammered back down. 

 I had been anticipating some pump 'n' dump action, as traders and money managers returned from vacation, so I wasn't too surprised by yesterday's action. 

What I was surprised by was the way the market was hammered back down, only to close about unchanged for the day. 

Normally, a midway reversal - like the one we saw yesterday - is a very bad sign, so for the market to NOT close deep in the red, was a little surprising.  

Futures look weak after Netflix's miss 

I'm kind of surprised to see futures holding up so well, after Netflix missed their subscriber goals.

Netflix itself is only down 1%. This just proves that the FAANG stocks continue to be used in order to rig the broader market. 

Watch for one or another of the FAANG stocks, or even Microsoft to rally, in order to balance things out. 

You'll even see CNBC report such nonsense; "Google is lower, but Apple is up". 

Can you imagine how difficult the market is going to be to read, once AI controls every headline, as well as most trading platforms? 

Here's an interesting video I found yesterday, as I was trying to deal with the boredom, of trading a flat market:

Speaking of the boring market

It's really a shame we have to waste so much time trading flat markets, and waiting for tops to form.

 Time is money, so nobody is making money in this market. 

I recently used financials as an example of a market that continues to chug slightly higher, on better than expected earnings, and it's an excruciating thing to watch, let alone trade. 

I'm still hoping things will pick up, now that money managers have returned from vacation, but I also think it takes time to get back up to speed, and if they're planning to take this market down, it takes time to load the algos. 

I think most traders don't realize how much planning goes into an engineered pullback. I imagine they probably even do computer models, and then have to recalculate, so that they don't end up having to pause in the middle of a correction, and reassess....   

Still looking for a pullback, and not because I'm extremely bearish, as far as sentiment is concerned. 

I think the market is complacent, and we just saw stocks run on light holiday volume, on the back of first quarter window dressing. 

Chart of the day 

 After doing some extra charting after yesterday's closing bell I discovered this bearish channel, on the $SPX futures chart. 

To be honest I'm not sure how accurate that chart is, so I have to do some more due diligence.  

Meanwhile Earnings down look so bad 

Take Care, AA 

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