Market snaps back to new all time highs, just ahead of the DNC

 This blog is going to be wrapping up everything I've been predicting, about the market being window dressed, in order to help Biden/ Harris - going all the way back to Market Wrap-up May 2024 

 

One thing I can confirm is that everything I've blogged about over the past 2 years - about the market being dressed up in order to help Joe Biden look good, and Trump look stupid, seems to be set in stone. 

 President Joe Biden's campaign ripped presumptive Republican nominee Donald Trump after the Dow Jones Industrial Average hit a record 40,000. The Dow's milestone comes with Biden effectively tied nationally in the polls with Trump, as the former president faces trial in New York - May 16th 2024 CNBC

Yesterday Evening Joe Biden was seen taking another victory lap at the Democrat National Convention

Joe Biden brags about the, "record high #rigged stock market". Told you so. $SPX futures chart. #DNCConvention2024 pic.twitter.com/W7TTNaxLWk

— Veteran Market Timer (@3Xtraders) August 20, 2024

 

Of course this not only explains why the market ran so fast after the election was stolen... but also why it has snapped back as quickly as it has, after last week's crash. I haven't seen a snap-back rally like this one, since the Flash Crash of 2010. It's truly historic!

Stocks rally to new all time highs; Looking at the $NYSE
This is something @realDonaldTrump was never able to achieve #DNCChicago #Kamunism #Bidenflation pic.twitter.com/csTLYkdyPL

— Veteran Market Timer (@3Xtraders) August 19, 2024

I'm still predicting that Trump is going to be allowed to take office again, but only so that they can pull the rug on the global ponzi economy, on his watch. 

I summed up how I expect this to play out, in the following TwitterX mini blog: 

I am an observer, and a realist. You may not like my version of the truth, but I'm used to being the contrarian, and the giver of bad news, and contrarian predictions.

The current administration - with the full approval of the deep state - is flooding the county with Illegals, and providing them with free housing, and money... in order to keep the Ponzi economy afloat, for just a little longer. Just long enough, until Trump gets into office. #TrumpCrash part II to follow...

This explains why Kamala Harris is seemingly throwing the election, by picking Walz as her VP, and offering crazy economic solutions, which seem to come straight from the communist handbook. She has no intention of winning....

Getting back the collapse: This one won't be solved - as the covid plandemic was - by printing trillions more dollars. If they try that, then we could be looking at an inflationary depression scenario.

My suggestion: Prepare yourselves for one hell of a storm (the best you can), but don't think the government is going to bail you out, this time. But also, "lift up your heads, for your redemption draws nigh" .

— Veteran Market Timer (@3Xtraders) August 17, 2024

But what comes next: After the Crash?

Before we continue with what comes next... you should probably view my blog from earlier in the week:

Reviewing The Most Recent Market Crash - The Who, What, When, Where, Why, of the Story

But what next: After the Crash? 

To learn what comes next, you should really review my take on Monday's crash, but in short you never see 2 market crashes in a row, (disclaimer) without any sort of real catalyst.

 

Edit: I started this blog on Thursday, and now it's run into Saturday morning, but I've already been proven right on the above statement, "you never see 2 market crashes in a row". We saw markets rally all week, and close near the highs of the week, on Friday.

 

Reviewing Monday's crash again:  

Most investors don't even know the real catalyst for Monday's shakeout, because the corporate owned financial fake news media of mass distraction, and deception - don't want you to know.... 

If the financial #FakeNews was honest, they'd report the truth about Monday's crash. Who, what, where, when, why https://t.co/ovGwvHDjC8

— Veteran Market Timer (@3Xtraders) August 8, 2024

...and they aren't about to tell you what comes next either. 

Instead they point to beaten up names like Super Micro, and NVidia, and the rest.   

$SMCI is nothing but a junk meme stock - in hindsight pic.twitter.com/XMpgdsnhK4

— Veteran Market Timer (@3Xtraders) August 6, 2024

They also don't tell you that small caps and financials were pumped and dumped, right on schedule.  

Here's something else #CNBC isn't telling you. Small Caps, and financials were pumped, ahead of the Japan take down. pic.twitter.com/GUmTUbDU1a

— Veteran Market Timer (@3Xtraders) August 9, 2024

That's right the whole thing was planned, and probably for at least a couple weeks. 

The BOJ had been telegraphing what they were planning to do - raise interest rates for the first time in decades - and nobody on Wall Street suspected anything out of the ordinary would happen? That laughable!

In hindsight the hedge funds who planned it, overplayed their hand. In other words it was way overdone, and many investors recognized the Monday morning surprise for what it was - a bear raid.  

In order to know what comes next; after a crash; is simple: 

 The same folks who pulled Monday's heist,  loaded the proverbial Truck/Boat - with their ill gotten gains - and we saw many stocks ON FIRE this week, and bottom picking in nearly every sector. Bitcoin rallied 20% off the lows!  

Of course, now that everyone is bullish again, we'll probably consolidate in a range, and maybe even retest the recent lows.Much depends on who done it, and if they are going to get paid on their bearish August options bets.

 

Wall Street crooks are never satisfied - even after an overdone crash - but that's how it goes.

 

Once the retail investor is sufficiently bearish again, we'll see a bigger short squeeze...  

 

Maybe that doesn't happen until Sept OPEX, when volume picks up, but you typically buy into an election year.

It's a crooked/ rigged game, and the crooks own 99% of the news media, and that makes it hard for the average investor to win.  

Good Luck, AA

Reviewing The Most Recent Market Crash - The Who, What, When, Where, Why, of the Story

Reviewing The Most Recent Market Crash 

The Who, What, When, Where, Why ,of the Story

First off a reminder: 

The Stages of Grief - shock - anger - blame - denial - (bargaining phase) depression - acceptance. 

After the shock, people predictably don't waste much time trying to find someone to blame, and we saw Kamala Crash trending almost immediately, as if she had something to do with it. 

Next we saw the lame stream media, and institutional investors trying to blame the Fed, for not cutting interest rates, again 🙄 

 The Who...?: 

 Last week's market correction has nothing to do with Kamala Harris, or the most recent FOMC announcement, and everything to do with the global market collapse, I've been predicting for several months. 

OK, but who caused it? Over leveraged currency traders... but there has also been news that Warren Buffett was a seller, so he should probably take some responsibility, and Buffett has the bankroll...   

I'm sure you've heard the now infamous Buffett quote: "Only when the tide goes out do you discover who's been swimming naked". All you have to do is find which markets took the most damage to figure out who was swimming naked....    

As it turns out Warren Buffet did very well: 

Warren Buffett's Berkshire Hathaway holds more U.S. Treasury bills than the Federal Reserve insurancenews.com

What: Treasury markets, and the $YEN Carry Trade. That caused Crypto, and highly speculative technology stocks to collapse. Small Caps and Financials were also taken down, after retesting the recent highs. Several markets were, "Pumped 'n' Dumped.   

When: I first suspected that the Japan rally wouldn't last, when it broke out to new highs in early July.   

Lucky for me; the wife's 401k remained in a safe fund:  

I could gaf about these idiotic summer rallies. The wife's 401k remains in a stable bond fund, until further notice.

— Veteran Market Timer (@3Xtraders) July 11, 2024

The Big crash didn't take place until August 5th; a Monday morning surprise. 

Luckily I didn't didn't go long Japan, ahead of the weekend, but I'm sure many did find themselves caught in a bull trap....  

Where: Market's crashed, from Stockholm, to Japan, and all points in-between, yet several markets, and even the DOW continues to trade above last month's lows.  

As most of my Twitter followers already know, I started alerting to a possible crash in Japan around July 11th, and that is where I started selling Japan using the leveraged bear fund $EWV.  

If you sold Japanese stocks using the leveraged Japan Bear EFT $EWV, you were up 20% in 2 days $NIKK $SPX pic.twitter.com/eddFinJAAE

— Veteran Market Timer (@3Xtraders) August 3, 2024

Why: The market collapsed because the Carry Trade was unwound at light speed, and that caused the Japanese Nikkei to fall 10% overnight, and everybody who followed the Warren Buffett Japan Trade was caught off guard. Of course several hedge funds probably saw this coming, and decided to use this as an excuse to take several US markets lower, in an obvious bear raid.     

Is this the big one? Probably not. This looks like a dress rehearsal, for what I suspect is coming in 2025. 

If the $SPX continues lower, then the next level to watch becomes the 200 day moving average.  There's still a lot to sort out, and it's turning out to be a lot of work, getting a handle on a crash like this one. There are better trades than in the $SPX, but this is what most investors still stay glued to.  

Take Care, 

AA