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Sunday, May 7, 2023

The Week In Review, A Look At The Week Ahead, A Cash Cow, Silver, Oil, and Disney

The Week In Review & A Look At The Week Ahead 

I could've called this update, "a look back as the market whiplash, and the failing banking system", in order to draw more attention, but the financial system is actually A-okay. I'm talking about the big banks, who are protected by the Federal Reserve, and backstopped by the tax payers. Sure, maybe some day the entire financial system will fail, but that day is a long ways away. 

Looking back at last weeks market action: 

This market is giving me a little PSTD from the days when we used to short the banks in '08, but I have a much better handle on things today, than I did back then. 

It was a good set up:

Thursday, was a perfect setup for yet another Friday short squeeze, and now that the bears are trapped, I don't see any reason why this rally can't continue. 

You may wonder why I tweet a $FAZ chart, when looking at the opposite trade, but that's a trade secret. 

Of course, if trading a sector that is threatening to go to zero is going to keep you up at night, then you should probably avoid the sector all together, but I like to trade whatever is moving.

A Cash Cow 

Do you realize that the Ukraine War is probably nothing more than a money machine, for the Kleptocracy? 

I even think that there's a good chance that much of the billions of $USD being put towards the war effort, is actually being used to finance campaigns, keep Social Security, and  Medicare, from imploding, not to mention the government pension, ponzi scheme alive. Like my mother always said... money doesn't grow on trees"! 

If the tax payer believes supporting Ukraine, is the morally right thing to do, then they've created a new source of revenue, just as they did in rebuilding Afghanistan, or funding the space program. When nobody in Washington is accountable, nobody knows where that money really goes, and what you don't know can't hurt you. 

This would explain why they became so enraged, when Donald Trump started looking into the corruption going on there - during the Obama administration - and they even went so far as to impeach him, and run him out of DC, on a rail. As they say, "never get between a whore and her money". 

'Is Ukraine being privatised': Netizens fume over President Zelensky's meet with BlackRock management

Is this not the perfect picture, of modern day Babylon, and an archetype of the revised Roman empire, spoken of in the book of Revelation? I think so. In fact I believe we're seeing the stage set for the battle of Armageddon. 

So is it morally wrong to profit from betting on the red horse, figuratively speaking. That's a judgement each of us has to decide, but it's only a swing trade to me, and in the end I'm betting against the beast system. End of sermon. 

The Financial chart 

$DJUSFN - Lot's to see here: 1. Firstly, we've already seen capitulation, as noted by the selling volume - last month. 2. The same bullish inverted H&S I pointed to in April. 3. An abandoned baby candle. 4. Clear resistance at the 50 day moving average. A breakout there will no doubt trigger buying programs, and send the short sellers into a panic buying frenzy. 5. Also see the little zig-zag pattern, noted, back between October, and March. Same pattern Gold, and Silver have traded into. 

Silver & Gold another conspicuously idolatrous trade with plenty of biblical context... "For where your treasure is, there will your heart be also.

Silver Miners 

You can see Carter Worth - of CNBC Fast Money fame - point to the pattern in the video linked in the tweet below. 

C.W. Calls this a "classic bullish reversal" 

No trend line, nothing.  

Even when this guy draws a trend line, it's never accurate! 

This doesn't look like a classic bullish reversal to me. 

Why do these TV traders always seem to wait until after something has already have a nice run, before offering the trade to their audience. Are the simply trying to unload their own positions?  

$SLVP Silver Miners - Classic declining, expanding, triangle pattern - aka megaphone. One thing to note is that this index just tested the 200 day moving average, and failed.... Chart it for yourself! 

He also remains bullish on Oil, even as it continues to decline, over the past few months. We call that, "fighting the trend", in the business! 

What charting software is he using? I try to recreate the chart and it ain't even close to accurate.

— Veteran Market Timer (@3Xtraders) May 6, 2023

Not sure why he's using an $XLE chart to time oil, but that's a new one...! 

 C.W. is also bearish Disney, so let's make this 3 for 3. 

$DIS - 

I'll be adding that $DIS chart to our basket of stocks in the Public Charts area. 

Good luck this week, 


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