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This carnage may be all but exhausted for today, with a 5 day cycle projection pointing to only 3885-3900 on the ES, 24 hour S&P figuretures.
Somehow, the unbiased auto TA got it right this week. Despite the fact that I had 8 shorts on my chart pick list this week, I still can’t get over how much I was looking the other way. I had essentially given up on the older shorts on the list, tightening the stops to just a hair above where they closed last Friday.
They never got hit. Fortunately, because I also added several new longs, and my practice is to give them a week to find a low before setting stops. That normally works out. Remains to be seen if it will this week, because the losses of the last two days would be brown pants syndrome worthy if they were standing alone.
The other thing I note on the above chart is that the conventional measured move target of this little top breakdown is 3765.
Meanwhile, the only way to sustain the bullish move in the bond market is for the stock market liquidation to continue. There’s not enough cash in the system to support a bullish move in bonds unless stocks are being liquidated. In fact, looking at the 10 year yield chart, the short term downtrend in yields should be just about finished.
And wow, just look at the past week’s massive rally in BTC on the weekly bar chart as it heads for its ultimate target of 5000 below zero.
For moron the markets, see:
- Federal Tax Revenues Are Slowing December 6, 2022
- Swing Trade Screen Picks – Picks are Balanced this Week December 5, 2022
- Bears Last Custard Stand December 4, 2022
- Bears Beware, Money Managers Are Finally Spending their RRP Slush Fund November 30,2022
- Swing Trade Screen Picks – Read My Lips, No New Longs (A Few More Shorts) November 28, 2022
- Major Inflection Point Here to Determine Whether Bull or Bear November 28, 2022
- Gold and Miners, Pullback Looks OK November 23, 2022
- Fed Policy Will Stay Bearish Until It’s Too Late November 20, 2022
- The Repeal of Rule Number One, Don’t Fight the Fed November 14, 2022
- Bond Market Rally is Technically Valid but Belies the Facts November 12, 2022
- Bad News for the Markets – Not Just Withholding Boomed in October November 3, 2022
- Surge in Withholding Tax Collections in October Indicates Faster Jobs Growth November 2, 2022
- Bear Market Isn’t the Mirror of a Bull October 31, 2022
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
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