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Friday, July 7, 2023

Taking a closer look at this fake AI rally - $BABA, $NVDA, Mullen Update

 In yesterday's update I mentioned the summer doldrums, and that's because trading volume is typically very light over the summer break, and that means this is prime time for market manipulation, and even after yesterday's downside surprise it was easy for the bulls to come in and sell the $VIX.   

That alone explains why the market rallied into the summer.   

The bulls got bored with watching the market trade sideways, and decided to create a leveraged AI fund (UBOT), and pump the AI story, and it looks like they aren't finished.... 

$UBOT (2X AI Bull) looks like it should bounce back hard, starting as soon as today 

We're also seeing China bounce back this morning and Reuters publishes a bullish story, which seems to confirm a bullish technical reversal, on Alibaba. 

$BABA - Reuters report confirms the chart pattern. 

 Mullen was up 300% over the past couple days as the company goes after the naked short sellers.  

$MULN Looked like this one a 15 min. chart. 

 As far as this morning's payroll number? I suppose that's going to be used as an excuse to sell into the weekend.   

It occurred to me yesterday that we haven't seen as much as a pullback in the past 4 months, so it should really be no surprise to see one taking place in July. 


It's been a month since NVIDIA reported blowout earning, and the trend remains up. 

$NVDA is the stock to watch/ trade 

Take Care, AA 


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