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Monday, July 24, 2023

Market weakness continues ahead of Wednesday's FOMC announcement

Market weakness continues ahead of Wednesday's FOMC announcement 

Firstly after reviewing last weeks market action:

Regardless of what the lame stream media reported about Thursday's sell-off being due to News out of Taiwan Semiconductor; the selling wasn't limited to Semiconductors. There was heavy selling across several sectors, including consumer discretionary, AI, and even Home Builders.

I assume they were lying in order to try to save the rally on the Dow, but who knows what their real motivation is?    

Of course, CNBC lies in order to try to make the latest move on the Dow Jones index sound like a historic event. 

Dow ekes out narrow gain Friday for 10th straight positive day, longest rally since 2017: Live updates CNBC

$INDU - the chart doesn't lie. There is nothing historic about the latest 2 week rally on the Dow. 

This - constant lying - explains why so few Americans trust the mainstream media.  

Wrapping up last week: Friday's close looked weak, but there was practically no change at the end of the day. The action was boring, which is exactly what you would expect over the dog days of summer, and even the overly hyped Dow index, ended about flat.

You could say, "stocks were pinned on weekly OPEX". 

The weakness may have been due to an adjustment in the weekly options market, or part of the rebalancing - in the Nasdaq 100 - we've been waiting for for nearly a month now. 

Why do the powers that be wait until now - to do a $NDX rebalance - after FAANG stocks have lead the entire market for the past 20 years?  

Another reason for the weakness is that investors are trying to raise some cash, ahead of the next FOMC announcement on Wed. I know that for a fact!  

This morning futures continue to look week, but off of the Friday morning lows. 

Looking ahead to Wednesday's FOMC Announcement   

Wed is also a big earnings day with Chipotle, and Meta reporting. 

$SPOT is another name to watch 

I have a whole list of stocks to watch, but I'm already out of time. 

Good luck, 


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