May Wrap-up:
Market's rallied into the Memorial Day holiday - as expected - but once the bulls got paid on their May Call options, we started seeing sell orders. Looks like mission accomplished, by whoever loaded up on bullish options, back when the $VIX was trading in the 60's. That's easy money for the deep pockets.
Of course we haven't seen much downside, and that's because the 200 day moving average acted as support; as I covered in the previous blog.
In hindsight; the 200 day moving average was taken out, back in early April, with the help of fake news reports which were predicting a recession lol
Fast forward to June markets have been driven back above the 200 day moving average, so that Wall Street fat cats could trap the short sellers, and collect on their bullish Options.
$SPX DCS chart - See where stocks found support at the 200 day moving average, but also see the gaps that have been left behind on the chart. More on this in a moment!
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The bears remain trapped
We saw yet another bear trap on Friday, ahead of Memorial Day. Why did the bulls wait until Friday to take profits? Because they knew there wouldn't be any short interest, going into the long holiday. We've seen this playbook many times before.
$VIX Volatility continues to be sold, into the last Friday of the month.
The $VIX continues to be hammered at resistance, but I feel the manipulators are getting a little nervous, as the weekend approaches. 20.50 is the number to beat
— Veteran Market Timer (@3Xtraders) May 30, 2025
Even last Friday's action - the last Friday of the month - looks like another bear trap, and this morning June 2nd futures are only lower by half a percent - last I checked.
#Breaking US plans wider China sanctions. $VIX touches 20. Market only cares about setting the next bear trap.
— Veteran Market Timer (@3Xtraders) May 30, 2025
CNBC Fast Money host falsely claimed that Chinese stocks sold off - in the middle of the day on Friday - on news that Trump is accusing China of cheating on their trade agreements, while in reality only Crypto markets which were sold on that news.
Debunking CNBC (financial fake news) for the 100th time
$FXI China gapped down at the open, NOT in the middle of the day.
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But wait there's more!
CNBC Fast Money also falsely reported - last week - that there are more "gaps to fill" - to the upside - according to their phony "chart master".
One thing is correct, and that is the fact that these gaps that were left behind (on the lower end of the chart) are bound to fill; sooner, or later. Whether that's next week, or not until later in the year, I can't predict, but if you know how to trade you should be able to see it coming a mile away, and trade it accordingly.
Just the fact that these downside gaps were left behind, is proof that the market makers had planned to go back and fill the gaps during the next tariff tantrum, or whatever other fake news the controllers have on tap.
Monday June 2nd
We see inflows, from passive investors (mutual fund buying), as stocks continue to consolidate above the 200 day moving average.
I suspect we could even see a retest of the recent highs, before the rug is pulled, because this is the pump 'n' dump bulls favorite way of liquidating their assets. Squeeze the short sellers, and dump at new highs.
Here's a chart pattern, every new investor needs to know. It's called the, "pump 'n' dump". #Investors pic.twitter.com/x5aRHEirU9
— Veteran Market Timer (@3Xtraders) April 17, 2020
Take Care, AA
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