Before You Know It – February 29,30,31, 2021

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4:45 AM ET

Wake up.

Get out of bed.

Turn on your screen.

Your shorts are dead.

That said, this rally is barely a 50% retracement, which is at 3860 on the ES fucutures. There’s also resistance at 3855. Above 3860 resistance lines come at 5-7 point intervals up to 3900.

Click to engorge.

Round and round she goes, where she stops? I don’t have a 5 day cycle projection yet. Zooming in to 30 minute bars, we see a 2-3 day cycle projection of 3883. No doubt, if they get that far, they’ll get to a test of the high. The conventional measured move target of a breakout from this base at 3860 would be around 3920-25.


But alas, it is only 4:30 in the AM in New York, and no one has seen this, or the fact that as I write, the ES is teasing a break of this new uptrend channel at 3849. If they can get it below 3843, da bearss could take charge again.

Meanwhile that $96 billion in cash that the Treasury pumped into the accounts of the holders of expiring Treasury Bills that it did not roll over, is working, apparently. They’ve gotten the 10 year yield down from a panic high of 1.61 on Wednesday to 1.42 now.

But the Treasury is settling $139 billion in new coupon issuance today. That should be good for a little puking today. Then on Tuesday and Thursday the Treasury has already scheduled rescue injections of another $55 billion.

It’s gonna be a chaotic week.

Last week’s selloff did less damage than it may have felt like. The drop stopped in the area of 3 crossing uptrend lines, ranging in length from short term to long term. Here’s what would tell us whether the uptrend is still in force, or signal that something evil this way comes.

I have added 8 new stocks to the swing trade chart pick list, including 2 shorts.

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Meanwhile, here’s some free stuff I’ve written about this unfolding catastrophe.

US Treasury Injects Another $30 Billion Into Market

Treasury Announces It Will Inject ANOTHER $25 Billion For $125 Billion Weekly Total

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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