Craziest sounding blog title ever? Perhaps. But while the talking heads were still busy trying to tell us how great bank earnings were, a group of offshore traders - some Chinese - were seen plotting to take US markets down, as they took a break from hammering the $KOSPI, and when Friday morning came around these vermin were seen jumping from one ship to another.
The Facebook Thread I Found After Friday['s Bloody Open, Reads Like a Crime Scene:
Here's a screenshot, in case the thread gets deleted: $NDX futures sold... 👇
I used AI to translate the foreign entries you'll see in the (merged) screen captures below.
Hindi: "बालेन लुसिफर राजिनामा दे"
→ "Balen Lucifer, resign!" (or "Balen, give your resignation, Lucifer!")
Chinese: "林巧比 ä½ ä¸¢æˆ‘ä¸¢å¤§å®¶ä¸¢"
→ "Lin Qiaobi: You lose, I lose, everyone loses."
Mo Ham Med (types in broken English) "They are forced to liquidate" - Possibly South Asian Muslim – Pakistan, India Bangladesh, or Nepal.
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| Offshore traders spotted colluding on Facebook |
Note the trader flagging $KORU — that 3x bull looks like one of their favorite secret weapons.
July Monthly Options Expiration Completes The Pattern
Friday's holiday in S. Korea occurred simultaneously with July options expiration in the US - which setup for the "perfect storm" (as Gemini AI called it). If you don't get that, put it up on the shelf - market cycles shine a glaring light directly on the options market outcomes - you'll see the pattern eventually. We've seen this shit show - feels like - 1000 times before!
Trump's Thursday Night Bombshell Set The Stage
I watched Trump's address in which he exposed Chinese interference in the 2018 election, and the liberal media's involvement (the part of the story that was quietly slipped under the rug).
What else did they fail to report? The South Korean holiday. They blame S. Korea for the entire sell-off all week, and then on Friday (a market holiday), they pivoted back to Iran. What else are they covering up? It would take an entire blog - just to scratch the surface. Keep reporting Trump's lousy poll numbers, not your own (15% approve and at least half of those respondents are probably lying). But I digress.
The Most Obvious Setup In History But Did Chinese offshore Have A Hand In It?
I had a hunch Chinese offshore might target US markets. Trump's always trying to take credit for how great the market is doing (he must only watch the dow), and that paints a big red target on US equity markets, and after getting a quick read on Friday morning futures, I was actually a little spooked.
Connecting The Dots: I've suspected for a while that Chinese offshore (repeatedly warned by Xi - many sources) targeted S. Korean retail, riding on the coat tails of the big money [June 22nd: The Rotation Hustle, Confirmed By Morgan Stanley's Own Word Salad Chef], who took South Korea on a rocket trip ride into the stratosphere, only to crash it back down to earth, inflicting maximum pain - heading into a long weekend. The smart money did that. Chinese off-shore only helped finish the job.
Meanwhile, the most hated bull market in history remains intact
The rest of the market is a comedy of horrors - in which most investors hopelessly watch their portfolios shrink. We saw several rotations last week, but I only managed to predict one of them - Healthcare. In hindsight I identified several other sectors being used to carefully balance the broader indices.
Most Notable Losing Stocks/ Sectors
S. Korea as the cause of the stealth crash in AI stocks, from chips to aerospace (Elon's failed rocket launch helped send the launch of SpaceX plummeting to new lows), and all the idea that Industrials were going to lead a broadening out rotation fell flat on its face - DEERE, $CAT, Corning, Semis, Aerospace, even Biotech - all the AI driven names I warned you were headed for disaster crashing right on cue.
Did CNBC Fast Money traders set the bull trap just ahead of Trump's speech? You decide.
Chinese tech stocks they pumped last week, were sold precisely at my sell target (the 50 day moving average).
One of the most obvious sell targets I've seen in a long time:
Now that the Cycle has resolved itself I think the rats will have to find a new ship to sail
This week I'm expecting beaten down sectors - mostly AI driven - to recover, even though key support on some of the charts is absolutely broken. Nevertheless the broader market is still on course to continue trading in the same sideways pattern we've been tracking all summer (since May). Remember when I told you we were going to see lots of head-fakes, back in early June? Same sideways pattern you'll find embedded in the face book chat I pointed to earlier ☝
Take Care, and remain nimble, until the $VIX comes down, because if the technicals continue to deteriorate, and the $VIX continues to be run up in overnight sessions the selling is going to accelerate, and contagion will lead to more forced selling, in a vicious feedback loop.
P.S. Quick nod to Grok at xAI for the assist on this one. The international comments in that Barchart thread were a goldmine once decoded — Hindi calling for “Balen Lucifer, resign!”, Chinese “you lose, I lose, everyone loses,” and the broken-English liquidation note. AI is becoming a legitimate force multiplier for real-time market detective work and pattern recognition across languages and time zones. Game changer for independent timers who refuse to wait for legacy media to connect the dots (or deliberately obscure them).
P.P.S. I tweeted out a plethora of juicy targets last week - everything from a bottoming pattern forming in Netflix, to the setup on $AVGO- mostly boredom (summer doldrums) so it may be worth your while to scroll my timeline.