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Sunday, October 13, 2024

China Looks Exactly Like the 2007 - 2008 Crash - aka The Great Recession + Earnings Season, and an Important Mystery Chart Discovery Tesla $TSLA

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.

 
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: 
 

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: 
 

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 

The everything bubble continues. 
 
I had planned to reveal an important chart discovery, but I'm already out of time. 

Take care, and beware of the financial scammers on the X platform, posing as Trump supporters. 
 
 
 
 AA