Finally Seeing Capitulation In The Tech Space
I've been predicting that we would probably see capitulation in the QQQ's, and FAANG, on NVIDIA earnings (on Wednesday), and seeing is believing.
NVIDIA can break out to a new high on earning $NVDA pic.twitter.com/uw0oJUWwYr
— Veteran Market Timer (@3Xtraders) May 24, 2023
We've been tracking NVIDIA for a while now, so it was actually an easy call.
These big tech names have been the only thing working lately, and even yesterday - on a down day - nearly every FAANG stock closed higher.
Panic Selling In Europe and China Spills Over into US Equities
We finally got some clarity on the sell-off in Europe this morning, as revised numbers showed that Germany actually contracted in the first quarter. The powers that be, were obviously tipped off to that, and sold beforehand.
Germany still looks bullish to me, and it's up this morning
$DAX - looks like a running wave B, followed by a pullback into a powerful wave C.
The $DAX actually doesn't look too bad. It simply got ahead of itself (in a running wave b), and pulled back to a higher low. 1 hr chart #Bullish pic.twitter.com/Gf8d8toM9j
— Veteran Market Timer (@3Xtraders) May 25, 2023
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| stockcharts.com |
US Markets
$SPX pulls back to the 4100 level, for like the umteenth time. The Dow tests the 200 day moving average , ditto. NASDAQ continues to run - off the chain. I suppose it could hold up for a while on light volume, as the smart money unloads their shares to Joe Sixpack, but I would expect to see some profit taking, ahead of the holiday.
$VIX - I can confirm that the $VIX was rigged above resistance at yesterday's open, so it appears that someone was hoping that the sell-off in Europe, and Asia, would spill over to US markets.
Looks like a good ol' fashioned bear raid, as I pointed out in yesterday's update.
Speaking of Yesterday's update: I forgot to pin that to the top of my twitter yesterday; in case you missed it; here's a link:
Market Update, plus a Super Bullish Chart Added to the Public Charts Area
That's all bullish, not to mention the fact that we're trading into a holiday
Getting back to the China
I did a little digging into what's really going on in China, because the "new covid variant" story, CNBC was seen peddling after Tuesday's close, just doesn't hold any water.
What about the Chinese Chip War? Why not just simply blame that? I'll tell you in a minute.
I did a YouTube search for information:
I'm not sure about the reliability of the source, and this looks like propaganda to me.
Same thing here: Very similar video - 5 days ago.
Fox News is also seen spinning anti China propaganda
It's obvious the Republicans, and the NeoCons (on both sides of the aisle), want to escalate the trade war with China, or it could be that both parties are playing a dangerous version of good cop, bad cop, with China. Biden and the Dems call for sanctions, and the Republicans call for stronger measures.
In the Fox News interview Gordon Chang mentions that the G-7 is decoupling from China.
Here's China shooting back
This would be a great story, but sadly you won't see that on the 6:00 news!
Why? because the left, including China Joe, are actually pro China.
The chart below proves that the left has been selling us out to China for decades.
The article below may help explain what's really going on in China, but I'm afraid I'm out of time
Take Care, AA
ssss
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