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Friday, July 28, 2023

Summer Rally Fizzles

 I wasn't planning to work today, but the weather isn't cooperating with my outdoor plans. 

Summer Rally Fizzles 

Looks like this rally is finally losing steam, after the trading action we witnessed yesterday; yet another nasty midday reversal, and it's no wonder... when you see the crooked hedge funds piling into Chinese Equities.

Hedge Funds Rush to Buy China Stocks on Economy Stimulus Prospects - Goldman 

Shanghai up another 2% overnight, Hongkong up another 1.5% 

Seeing US traded Chinese stocks up 4% in premarket - being jacked above resistance - in an attempt to squeeze some short sellers.


Looking at the $FXI chart; I can't help but wonder if Jamie Dimon and the Racketeers at JP Morgan know something about this?!

US Markets 

The biggest reversal in yesterday's session was in Semiconductors, many of which were pumped to new recent highs, before giving back half their gains, which may have something to do with $NVDA earnings, which are due out today. Remember, it wasn't until NVIDIA Earnings which triggered the AI story a month ago. 

This looks like the old pump and dump out of one sector (chips), and into the next (China). 

Facebook also made a new recent high, nearly filling the gap that was left behind last year.

$META - Nothing bullish about the recent market action. Just another mega-gap target being filled on light summer volume; with the help of the financial fake news, of course.  

Tweeted this morning 

The $VIX  

Yesterday's little break out on the $VIX was a surprise, and I'm still not sure what to make of it, but I've gone from bullish, to cautious:  

I can show you this very short term view of the $VIX. 

But I later found a $VIX breakout point that concerns me. 

Another reason we're probably seeing some profit taking, is because of the long August break coming up for Congressional Insider Traders.  

Exercise extreme caution as we trade into August 


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