Bombshell report breaks the summer doldrums - $VIX 30?

Global markets slide after Fitch downgrades US debt 

Notice how that story was delayed until technical Tuesday? I believe this was to ensure that indirect (retail) investment money would continue to be put to work, and as I pointed out in yesterday's update; it takes a very long time to take profits after driving stocks higher for 5 consecutive months. Expect the market to continue to be held up.

Of course the powers that be, knew this downgrade was coming, and just as we saw with the S&P downgrade in 2011, there isn't expected to be any forced selling. 

$DAX pulls back to the 16k (even number target). 

Dow futures were only down .3% last I checked, so the manipulators aren't finished...   

Fake News

Of course the lame stream mainstream media has done everything in it's power to downplay this US debt downgrade, and Bloomberg has spent more time parroting Janet Yellen's false statement, than they have... reporting the actual story. 

As much news as I watch, I didn't even see the story being reported yesterday, and even after I saw, "Yellen" trending on twitter, I still wasn't sure what to make of it. 

US Debt Downgrade, Yellen, Market Impact, Ugly Manufacturing PMI, Fed Speak

Treasury Secretary Janet Yellen may want to just pipe down and be glad it was only Fitch... realmoney.thstreet.com

Watch for Janet Yellen to do another tour of the Sunday shows this weekend! 

Even this morning Bloomberg continues to spin the story, in order to help Joe Biden, while pointing an accusing finger at president Trump.

Trump Indicted, Again nytimes 

If you still think the market isn't going to be rigged to help Joe Biden - and whoever else is going to be running in the 2024 Presidential Election - then just keep watching..!  

The Broader Market 

Markets continue to look pretty dull, except for the occasional blow-off top, like the one we saw in Caterpillar $CAT yesterday. 

Investors must believe that the unbridled spending - on infrastructure projects - can continue?    

That sure would be nice... but you can't have unlimited growth, in a limited resource world. 

$SPX - continues to look pretty dull and that's because momentum has dried up.  

$SPX rises at the slowest pace since early Jan. 5 min. chart pic.twitter.com/kCq4P2UQiH

— Veteran Market Timer (@3Xtraders) August 1, 2023

This is what happens at every market top. 

Regardless of all the negative news, and selling overseas; even if we see a pullback this week; I don't believe the $VIX can even break above the 20 level.  

$VIX prediction 

$VIX 200 day falls below 20. Good chance we're not going to see those levels again in 2023. Rigged markets

— Veteran Market Timer (@3Xtraders) August 1, 2023

Take Care, AA 

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