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Surviving Market Bears Being Teased

Published 10/09/2020, 03:52 PM
Updated 07/09/2023, 06:31 AM

If the market gods wanted to tease any surviving market bears in the cruelest way possible, they managed to do it twice over just the past few days:

Last week, with President Donald Trump getting COVID (end result: nothing) and then, just days letter, the President saying “No dice!” to any kind of stimulus package (end result: nothing).

Someone – and I think his last name rhymes with “owl” – really, really, really wants this market to keep chugging higher through election day. It’s sickening and boring at the same time.

RTY Daily Chart.

What makes my blood run cold is the chart of the ES below. Back on Sept. 24, we were poised across the board for a beautiful breakdown. Well, that just isn’t allowed, and we’ve been doing nothing but going up ever since. That is a powerful basing pattern that has been completed, so I wasn’t surprised Thursday after the close to see everything still ripping higher.

ES Daily Chart.

As I’ve been mentioning, I’m starting to think it best to virtually go all-cash until this election is over (not to say that we’ll be “all clear the Wednesday morning following, since God knows what the state of the results will be).

Latest comments

1 word: stimulus. New money will all endup in the rich’s hand ie the market.
How far its can get higher,and what will be VIX
Banks have been contracting credit. Highest contraction in credit standards since late 2008 (after the GFC)
Let's see how many people can guess the last name of the person rhyming 'owl' who wants to keep the market chugging higher until Elections :)
Boog Powell.
What’s about next Wednesday??
I switched to a 20/80 mix weeks ago. This market is bat chit crazy.
manipulated by you
Whole new level of manipulation right here
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