Market Update Wed. Hump day. Google Alphabet & Crude Oil Breaks Out

 Yesterday, we saw a continuation of the bear raid we saw in US equities on Friday. This was on the heels of some weakness in Germany, with the $DAX ending down -2.29%. Of course you don't hear that being reported in the US, and Bloomberg was seen trying to convince Traders that yesterday's selloff had something to do with Trump tariffs, or overvalued Mag7 stocks, when they weren't busy covering the festivities going on in China. 

I was kind of surprised to see the rug pulled on big tech, but this is what the fast money on Wall Street does. No sooner than they return from vacation they try to shake out the retail investor... so I'm chalking it up to your typical Monday/ Tuesday morning surprise. A Bear Raid; more than a Bear Trap, although I'm sure some bears are finding themselves trapped this morning. 

 $TECS Watch for the 3X Tech bear $TECS to be hammered back down into the bearish channel...

Bear raid; same MO: hide in precious metals or whatever else they can manipulate, drive the $VIX higher, and sell Apple, NVIDIA, or any other names they can't wait to put money to work in.

But that plan seems to have been squashed, as we saw stocks recover late in the day, ahead of what appears to be a strategically timed bullish press release coming from Google. 

I'm filing this under the, "rigged news reports that are used to move markets", folder, and here's BAC working with CNBC again? If memory serves, we saw something similar just last week. More on that in a minute, once I track it down, but first today's headline:

 CNBC wants you to pay to read this article, which I find hilarious: 

 

 The last time we saw Google pull something like this was when they rehashed their Willow Chip news back in December, in order to cause the bears to capitulate. If you recall, that marked the previous all time high in mag7 stocks.  

 Here's the previous BofA pump which looks like it was designed to help CNBC. 

 

Bank of America raises gold forecast, noting Trump threat to Federal Reserve independence https://t.co/QKzSNZuPKy

— CNBC (@CNBC) August 29, 2025

Can you say, "racketeering"? 

Going to the charts: 

$GOOG Alphabet (DCS chart) To document the previous high...  and this morning we see it trading around the $225 level (a new all time high) the last I checked.  

Furthermore, I see no need to raise a price target after the fact, but this is what bankers and analysts do in order to try to remain relevant.    

$NDX - not only did they sell the right shoulder on a H&S pattern on Friday, but they broke the trend, and shook out some retail investors below the 50 day moving average. In other words they took out some stops.   

 Crude Oil 

Oil rallied to a new recent high yesterday. I was looking at the chart yesterday afternoon, and it just looked misplaced to me. This morning I noticed that the $USO had been driven above the 50 day, in order to trigger program buying, and I suppose investors who saw Tech selling off, piled into crude oil, as usual,  but this morning we're seeing the backlash...

 As long as these sector rotations continue, then we aren't going to see any meaningful pullback. 

That also goes for Crypto and precious metals, and even utilities.  

As long as investors continue to hide in defensive sectors, that's money that's not going to be put to work in conventional stocks. 

 Take Care, AA 

 

 

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