First the China trade, and how
the recent short squeeze looks exactly like 2007 - just before the financial collapse got
under way - and that presents some great opportunities for anyone who is able to trade it, going forward.
China rallied into a short squeeze on stimulus hopes, only to crash 10%, and this is exactly what we saw at the beginning of the financial crises in the US in 2007.
Alerted to the Bullish setup in Chinese stocks, before the rally. Warned of the crash in China, the night before... https://t.co/Qy1yDdVVpP
— Veteran Market Timer (@3Xtraders) October 9, 2024
I'm up 30% in Oct, after catching that massive reversal, but after a couple big moves like this, you typically see a lot of sideways consolidation.
The
truth is 90% of traders are gamblers, who are looking to chase the next
rally, wherever it may be, but they lack any charting skills. You see them ask me
for advice all the time, and I simply block most of them, because if
you have to ask me if you should short oil (for instance), then you are
only asking for trouble.
If
you're inexperienced then you should start by trading something less
volatile... although in today's market volatility can turn on a dime, as
we recently saw in China.
Earnings Season Kicks Off
Earnings season kicked off on Friday, with Financials, and in all the excitement that part of the equation didn't present itself front and center, in my mind.
If I had been charting Financials, I might have seen the breakout coming earlier, but better late than never.
25 min. before Friday's opening bell:
JP Morgan reports better than expected results. Bear trap set for Yom Kipur $XKF Financials Trade#StocksInFocus pic.twitter.com/xU60Ryhbbh
— Veteran Market Timer (@3Xtraders) October 11, 2024
Financials
broke out, or should I say, "the retail bears got caught in a bear trap
again?" This is what holiday trading is all about; trapping the short
sellers.
In hindsight my market outlook was spot on when I pinned this tweet to my X timeline:
Tomorrow is Yom Kipur, and Monday is Columbus Day, so stocks will probably continue to hold up into the weekend. Next week is OPEX and the $VIX remains elevated for a reason. #OctoberSurprise $SPX #DowJones #Nasdaq $NDX #Oil #Gold #China #Crypto #Stocks
— Veteran Market Timer (@3Xtraders) October 10, 2024
There
was also a bear trap set on the leveraged financial bear ETFs.
Speaking of bear traps: Spotted this one in Tesla, which closed lower on Friday, just ahead of Tech earnings
A dire message for Tesla short sellers $TSLA #CNBC https://t.co/6R0H0GVqtW
— Veteran Market Timer (@3Xtraders) October 12, 2024
The everything bubble continues.
I had planned to reveal an important chart discovery, but I'm already out of time.
Sharks in the water. Financial scammers posing as Trump supporters pic.twitter.com/501b1cRGUj
— Veteran Market Timer (@3Xtraders) October 12, 2024
AA