If you've turned on your TV this morning, you'll find the financial (fake news) outlets have the market fixated on another CPI data release this morning.
I suspect the number has already been leaked, but what's important is whether the news is bought, or sold.
Buy The News; Sell The News?
Over the past several months, all the news has been used as a buying opportunity, so I'm expecting that trend to continue.
We're already seeing the tech junkies throwing in the towel on the AI story, as they continue to pile into energy, but this seems a little premature.
What do the charts say?
We've only seen a tiny pullback over the past few trading days, and unless you're watching a 15 minute chart, it's hard to even call this a bearish reversal.
$SPX - 15 minute chart - looks like a bearish leading diagonal triangle. What that means is we're probably about to see a powerful snapback rally in wave b (or 2) - whatever the case may be.
The #SPY trades into a bearish pattern $SPX "" pic.twitter.com/6VPVhG9b3b
— Veteran Market Timer (@3Xtraders) August 9, 2023
The first leg down in a correction is always a move, nobody believes in, and so investors can't wait to buy the dip. That's what I'm predicting. A rally which probably continues into next week.
There's also a good possibility that we see money flow out of energy, in order to raise the cash to force a little short squeeze in tech stocks.
Natural Gas
Of course most eyes are on natural gas - which we've seen up over 5% - for the second day in a row, but Bloomberg doesn't like that story, because it runs counter to the official narrative, that Joe Biden has helped to bring inflation down lol
What does the chart say?
That depends which charts you're looking at.
I found yesterday, that the $UNG fund doesn't follow natural gas too well
I'm finding $UNG doesn't always follow the price of #NatGas 🤔 pic.twitter.com/IJdrauZKEc
— Veteran Market Timer (@3Xtraders) August 9, 2023
Even so, yesterday we saw the price action jacked above the previous high (7.83).
That's the level to watch.
$NG - There is the possibility that we see another retest of the top of the range, or even a throw-over, at, or above the 3.13 level.
That's all the time I got,
AA
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