Market Update

I have been saying this over and over again… but you all need to know that what is happening all around us, and especially in the market, is all being done intentionally!  This entire takedown has been artificially driven by the futures.  How do I know?  Because they have had multiple opportunities to ignite huge rallies that have each been forcibly squelched using the futures.  Today (so far) is another one.  Check out the huge number of Bottom Spotter alerts that were present at yesterday’s close:

https://stopsandtargets.com/members/signals/bigpicture2.html

Yep, there were 1,013 of ’em!

 

 

click image to enlarge

 

So, I say to myself… if I were one of the pros sitting with HUGE profits on my all-in short positions from the top–what would I do if I were them?

Each candlestick on the chart above represents one month of the S&P 500 FUTURES contract.  When the pros go big on a premeditated move like this they are always looking for a stop trove as a price target.  The stops they crave almost always live under an untouched support pivot in a pullback, and above an untouched resistance pivot in a rally.

Do you see the dashed gray line on the chart above drawn from the ‘VLT’ green highlighted pivot at 2319.50?  Guess what would happen if they pushed price down under that line?  Do ya’ think we might see some new sellers come in there?

It is as plain as it can possibly be to me that the market has been intentionally forced down–and the ridiculous stuff coming out of the Fake News is simply laughable at this point.  They are doing everything they can to create a panic–and I do mean everything.

Want to see some facts about how silly this whole virus charade actually is?  Click the following link and take a glance at what the Fake News is breathlessly describing as a ‘pandemic’:

https://www.visualcapitalist.com/history-of-pandemics-deadliest/

 

What we have been seeing is an organized all-out attack on the financial system of the United States by unknown actors and for unknown reasons that will likely only become apparent to us later.  What is somewhat curious to me is why the Trump administration hasn’t used certain financial tools at their disposal to stop this.  I am going to assume that they know things we don’t and just go with that.

So, we have an intentional takedown, no uptick rule has been reinstated, nor was the Plunge Protection Team apparently activated to jam the overnight futures as they have under previous administrations to halt a decline.  This all feels like an old Tom Clancy plot to me.  Lots of moving parts here and the propaganda from the global socialist media freaks likely is a smokescreen to hide the real attack, which is so far unseen.  Let’s all hope that President Donald Trump is Clancy’s hero Jack Ryan in real life.  I am sure that man has his hands full figuring out who is behind this and what the real intentions are.  I kinda like the way things turned out in Clancy’s book Executive Orders in the aftermath of chaos from the preceding book Debt of Honor.  A guy can dream can’t he?

So, back to that line at 2319.50 on the monthly bar chart above… If the pros really wanted to shake loose maximum sellers, that line would have been the obvious goal from their perch at the tippy top.  If I were them, I think I would suck in as many buyers as I could just above–and then run it down under that line to open the true floodgates of selling.  The void of support underneath between 2319.50 and 2095.50  is where I would cover my short positions, and that is also where I would look to redeploy on a reversal.  But, my alter ego is an exceptionally devious bastard… so ya’ gotta take that into consideration.  Yeah, if I were the one pulling the levers I think I would take those stops under 2319.50 and then set a double bottom somewhere near that line and then rally like hell once I had packed my fat little squirrel cheeks with all the nuts I could carry once price confirmed my thesis.  We’ll see how it goes, but that’s what I would do if I were them.

 

 

I have been pounding the table trying to point out that knife catching under these circumstances is really not the best tactic.  I remain adamant that the first clean sign that the pros are finished with INTENTIONALLY holding the bulls’ heads underwater will come when we eventually get a close ABOVE the short-term stop/reverse line to break the bearish cycle of lower highs on daily bars.  The short-term stop/reverse line (which is also the last lower high on the daily bars) on the S&P 500 Futures is at 2542.75 today.  It is simply impossible for a major reversal to occur without that line FIRST being crossed.

When the time comes to buy with both fists, most people will be absolutely terrified and want no part of knife catching at that point.  It’s a crazy thing, but that’s exactly how market psychology works.  Paradoxically… when a trade feels good on the initial entry, more often than not–it probably isn’t.  That’s the really cool thing about Stops and Targets.  It is a logic-driven machine, with no feelings… you know, kinda like me.  🙂

…my .02