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Monday, December 18, 2023

Donald Trump predicted the market would crash under Joe Biden, and here it comes...

First off: I sent out a Newsletter Sat. morning, letting my people know that I've taken profits on the Nov./Dec. rally. I didn't want to leave anyone hanging.

As you may recall; back in early November I called the bottom on the bond market, and then most recently I went all in, into small caps, which have vastly out-performed over the past few weeks. 

$RUT (IYM) Russell 2000 small caps - I can show you the chart, now that all my targets have been taken out. 


The recent market action is the most ridiculous, in recent memory, and the lame stream media has had to continually bend over backwards to make excuses for it. First calling it an AI boom, then a hawkish fed pause, then a bullish fed pause, and most recently a fed "pivot", but the truth is this is just another pump job designed to pull the wool over the eyes of the average Joe, and to make our counterfeit president look good, and Donald Trump look bad, as they continue to declare victory, at what they are calling "New Market Highs".

I predicted that we would see a massive EOY Rally in an attempt to help Joe Biden, in 2024, and here we are.

Who watches the Dow? That's right, Joe Sixpack, and these rallies to nowhere are all about election interference, just as I predicted would occur, going into the end of the year, but this isn't the first time....  

Remember when $SPX futures were driven to 5000, on Joe Bidens inauguration. That was real cute!
To be honest I had a little trouble with that overshoot - on a technical basis - but it all makes perfect sense now! Trillions were printed, and used to pump the Ponzi market. 
Immediately after Friday's close: 

As I've pointed out in the past, the market can only trade (bullish) like this,  on very light volume, be it in July, or Nov/ Dec. - it's that low volume periods like these are prime time for manipulation.


Also US dollar lower, stocks higher

This is all smoke and mirrors, as I pointed out again last Thursday; look at the Dow priced in Gold.

Also Inflation

Think of the market at a carton of eggs, and when the price of a carton of eggs goes up farmers are told to celebrate. The problem is that a carton of eggs is priced in worthless dollars, so the cost of chickens, and chicken coops, and feed, and the cost of transporting eggs also goes up, but to the average person they look at the price of a carton of eggs double, and think, "wow there farmers are getting rich".


Getting to the play action, and some charts:

I could only watch a few minutes of Fast Money, but it didn't take long for the host to ask if the traders on the panel if they believe stocks are going higher into the end of the year - in less than 3 weeks, and they all raise their hands lol

The thing is, this rally has already  slowed, and several sectors have already painted bearish candles on daily Candlestick charts, and any money manager with an ounce of  common sense is going to raise some cash ahead of the new year.

It seems to me that the controllers have already accomplished their goal - positive headlines - and now it's time to take profits.

Let's take a look at the financials (banks) since CNBC and Bloomberg want to talk about how great it is that all the  losses - due to miss regulation - under Joe Biden - have somehow been "recouped". Yes, I actually heard this reported, and I knew they were lying, before I even pulled up a chart.

Financials Chart- this is a great example of why you don't see any relevant charts on Fast Money




If we can get a good market crash here, we could see a nice Santa Rally around the 1st of the (new) year, and that would set up for a much larger correction. 

Sooner or later, the Chickens are coming home to roost, in the form of an economic contraction. They prevented it in 2001, by deregulating the banks, and then again in 2008, by bailing out the failed banks. Today they just print trillions, and report lies, in order to give the illusion that we're not already living in an economic downturn (crash). 

Homework: Chart several sectors and look for bearish reversal candles

Take care,

AA

P.S. the market rigging is global, and starts in Germany 

#DAX takes out the 17k target 







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