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Saturday, April 15, 2023

Weekly Wrap-up; Financials, $SPX, $VIX, Silver

 Sat. Morning: 

I sent off the latest weekly newsletter this morning, alerting subscribers to the warning I put out on Thursday, after the $SPX took out our target, as well as other important points I made in that article. 

Friday's Trade: 

Friday's trade was as ridiculous as ever, which seems to have become the new normal.  

Bank Earnings spurs more Wall Street hijinks: 

Financials/ Banks pumped on light volume, in order to squeeze out a few retail short sellers. Thankfully I wasn't one of them. 

$DJUSFN  I may have got the short term direction - or timing - on financials wrong, but I wasn't short, and even if I had been... it wouldn't have amounted to much of a loss.  

Ultimately Friday's tiny move is meaningless, as most of the recent market moves have been.... 

I mentioned in this week's newsletter that the market action has been weaker than expected, and you can see that in the chart above. 

Perhaps the bulls can continue to hold financials in the top of the range for several more days, and that seems to be another trend we're seeing. 

As I mentioned last week, it looks like the market is only being held up, in order to crash it at a later date. I later confirmed this on one of my charts, and I may reveal that in a future blog.   

Getting back to the banks 

I noticed 2 Banks jacked up on Friday, and as it turns out these were the 2 biggest movers...  

$JPM - of course this is one of Wall Street's favorite names.  

$C Citigroup - the same zombie bank that played a key role in the 2008 financial collapse. 

Recommended reading: 

Mr. Weill Goes to Washington pbs

The politics and the impact of Sandy Weill's creation of Citigroup, the first full-service superbank, and the repeal of the Glass-Steagall Act that stood in his way.
Short Squeezes

Of course this is what you typically see in bear markets, and the recent action doesn't bode well for the  bulls. You can't make money forcing Friday short squeezes forever. At some point normal stocks have to perform, or you'll see more investors leave the market entirely, and move into alternative investments, like Crypto.  

Do you realize that fewer stocks have made new all time highs - when compared to all time lows - over the past decade (plus)? That's the definition of a bear market, and it explains why all the heavy lifting has to be done by a dew names like Apple, Microsoft, and ExxonMobil.  


We continued to see highly unusual $VIX action on Friday, as the powers that be continue to short the $VIX, in order to purchase cheap Puts.

This explains why the $VIX continues lower, even as the market rally peters out. 


Silver continued higher, and it makes me wonder if the market isn't being manipulated, like we saw in the 80's. Probably not, but you just never know.... 

Silver Price Manipulation: Fact or Fantasy?

We've also seen gold manipulated in the not so distant past.

JPMorgan to pay $920 million for manipulating precious metals, treasury market

With that in mind, you don't want to fight the direction in precious metals, for too long. 

We did however see the sector smashed on Friday, once the $USD bounced off a double bottom. 

Silver - we may have already seen the reversal, although targets on commodities overshoot all the time. Good luck


Take Care, AA 



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