Market Setup Israel Hamas War

Happy Columbus Day

Today is a banking holiday, so expect lighter than normal volume, and keep in mind that any cash trades are going to take an extra day to settle. 

Wrapping up last week: 

Friday was bullish as expected, all it took was for the $SPX to test support, before it bounced out of the hole. 

The employment number looked bearish, but it was only enough to shake out some weak hands 

Today's lucky number on the $SPX was 4222. Should've been watching that, not #CNBC, emotional basket cases, talking heads. pic.twitter.com/UsawnDLqxj

— Veteran Market Timer (@3Xtraders) October 6, 2023

The market's overnight reaction to the Israel situation doesn't change my bullish outlook.  

Oil

Oil bounces out of the hole, after calling the bottom last week. 

Brent Crude Oil retests the recent lows #Bullish pic.twitter.com/RFPC7h4Ida

— Veteran Market Timer (@3Xtraders) October 6, 2023

The Israel event is used as an excuse to squeeze the retail short sellers...

Oil is jacked back above August (support), trapping the short sellers. Classic #ShortSqueeze#Israel pic.twitter.com/IEQOVnXK9K

— Veteran Market Timer (@3Xtraders) October 9, 2023

Oil was up 5% overnight, but had pulled back slightly, this morning.

The news coming out of Israel is only being used as a reason to drive markets. Oil puts in a bottoming pattern, one day before war breaks out in the middle east, and there's a simple explanation as to how the chart predicted it, and that's because the whole thing has been staged.

This would explain why the lying lame stream media went out of it's way to try to sell the story as a surprise, and were also seen comparing it to 9/11 - one of the biggest hoaxes in history, to be pulled on the American public. 

I'm not the only one who sees what's really going on in the world:

David Icke – what’s REALLY happening in Israel https://t.co/HvHtSoBhQZ

— Veteran Market Timer (@3Xtraders) October 9, 2023

 

Natural Gas 

Natural Gas rally continues to rally off the bottom, which was put in back in April. 

NatGas futures are testing the 2020 highs, and res. around the $3.60 level. 

 

Over 400 views on the weekly chart linked to the tweet below 

Natural Gas prices are on fire #Bidenflation #Heat #Cold #Furnace #Heating #NatGas pic.twitter.com/XbHCpYRwgi

— Veteran Market Timer (@3Xtraders) October 7, 2023

$UNG traded into a right shoulder on Friday, but looks like it's going to test the top of the range around the 8.15 level. Resembles a broadening triangle - or megaphone pattern. 

Gold 

I only mention gold, because Carter Worth turned bullish on Gold, just ahead of this Israel war thing, and this morning we see it up $20 

 Gold 30 min chart, looks just like the oil trade.  

That's uncanny, and that's what keeps me interested in charting markets! 

This morning: 

$SPX futures pulled back to the 4300 level, on a snap reaction.... I think it's going higher. 

$VIX  - seems to be working again - trading at 19 in pre-market. Of course 20 continues to be the magic number. That would be the thing to watch...

$TSX Canada has already rallied back into the green, so I don't see a wider (conflict) contagion being priced in. 

Take care, 

AA 

Tweet