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Tuesday, August 31, 2021

$SPX - Finally to get Overbought

SPX has been grinding up but it hasn't been enough to get overought. September is a reopening month with US borders scheduled to open on September 21. Can SPX finally muster enough to get overbought? Daily

144 comments:

  1. SPX so weak it struggles to get overbought.

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  2. sc,

    Is this the place to start to look for swoon effect in the market--I still see SPX 4580?

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  3. https://tv.gab.com/channel/starcrest/view/how-the-covid-vaccine-destroys-your-61256f39e777d97a1d7d900a

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  4. Spx should reach 4580 to 4600
    By Sept 25

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    Replies
    1. Yes Louis estimate Sept 21. That may be the event.

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    2. Federal reserve meeting is on this day

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  5. October always a good time for fear

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    Replies
    1. September too. But crashes seem to happen in October.

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  6. Planned trade is coming. Reserving capital for this trade. Price coming down slowly to the entry level. Covid fear trade could be spectacular.

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  7. AMC has warmed and should be good for a lower high at $60. I have some.

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    1. AMC is more appealing than Gamestop because movies appeal to a wider audience than video games. It's a reopening trade and especially appealing to the masses who want to escape reality when you have the backdrop of economic collapse in pandemic.

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  8. SC, why do you think about crash? The market is so strong, do you really think about vix 140 to 170?

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    1. We can see that people are receptive to fear. Afraid about everything. No matter what the outcome it is seen as negative. Glass half full. Each crisis leads to something worse.

      The volatility is increasing everywhere. We have seen it in other markets this year. It will come to the S&P again.

      And we see it in the VIX. Already tested 2008 high last year. A larger move will follow as it breaks that high.

      I'll explain more in the big picture charts.

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    2. yea.. but that move may not come for quite some time. VIX testing 2008 high was probably once in a ten year event..

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    3. Yes that's right it will take time.

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  9. Hi SC, XBI is 2 dollars short of 137.00 target. You had mentioned XBI would hit 137.00 then back down again. Could you elaborate how far down you are looking for, what target you are expecting. I'm a bit confuse when you mention coming covid fear trade. Will XBI & OCGN be a buy again when XBI goes back down?

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    Replies
    1. The upper resistance is $140 XBI. $137 start looking for a turn down. $120 support.

      Yes from $120 I am expecting bull run in XBI. This is clearly defined and very helpful in timing not just Biotech but many markets.

      For OCGN it'll be close but I am expecting a slightly different turn pattern, but yes OCGN follows Biotech.

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  10. I am waiting for the vix big chat

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  11. The main point is that SPX is getting more volatile as it rises. The 2008 drop for SPX was about 56% and SPX dropped 32% in 2020. VIX tested the 80's on both so volatility is rising.

    On a 50% drop in SPX expect VIX break out of the 80's to 170.

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    Replies
    1. Is this happening in the next year or we may need to wait another 5 years plus ?

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    2. What China sees is the US army running from Afghanistan and a weak President. It may be advantageous for them to attack during this term.

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    3. Certain events have to happen first anyway so that takes time

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  12. GUSH showing strength off the 200 dma!

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  13. So, SC, the spx is going to drop 50% again?

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  14. Hi SC,
    get you post a graph for spx targets?

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  15. Yes the SPX is coming. Everything is shown there.

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  16. I share your concerns about our weak President SC. Sadly, anything's possible with this bunch.

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  17. The "chip shortage" is not believable anymore. New car sales are plummeting. Reason is two fold. Gasoline prices are spiking. Pretty well doubling over the last year. Expect Gasoline to double again short term and up 300 to 400% in a few years. Also the shift to electric cars.

    For these reasons car salesman offload their entire inventory. They do this by creating a "shortage".

    "Ford’s U.S. sales decline 33% in August as chip shortage devastates auto industry"

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  18. The timing of a 50% to 60% drop or more will be interesting. Will the Fed be able to prop up the market through the usual holiday rally, propped up through the 2022 midterms? Thanks SC.

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  19. Ever wanted to trade 1987? We will have that opportunity equivalent in VIX. Volatility bull market the biggest of any market currently. The average person has no idea.
    They do not even know what VIX is hahaha

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    Replies
    1. That would be a dream come true. I was so quite disappointed when I missed out on the 2020 fall, sold my UVXY calls right before they would have run 120x the cost in two weeks...

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    2. Yes extremely lucrative trading volatility Joe.

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    3. That's at the end. It'll be clear looking at the Cycle. First we have other events happening. There were requests to talk about the big picture, but yes that's a long time away.

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    4. Just a preview about what is to come. Years away though.

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  20. "AMC Theaters announce new Labor Day weekend admissions record"

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  21. Replies
    1. September is a significant reopening month. USA is planning to open borders Canada and Mexico on September 21st.

      AMC could put in a lower high in the $60's. With economy in ruin there's not much else to do but watch movies.

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  22. Can you please post the spx chart ?

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    Replies
    1. I will Sami. And I have something coming.

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  23. sami,

    we would all like to see this --but it will not be formulated to certain parameters come to lite ----fear in the market ---we are not there yet.

    we are getting closer to it---we still can SPX 4600------there is no fear yet!

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  24. To put in perspective SPX down 40 points over 4 days. 0.87%. Very little movement.

    My theory has proven correct. Some time ago I had said that I will look at SPX once a week.

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  25. AMC still good despite GME demise. Compare MACD on both with daily charts. Big difference. AMC is clear winner.

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  26. GUSH looks good. Similarly no issues in the daily chart.

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  27. sc,

    we were looking for a big move up into new highs,
    the spx --gave in at the end of day--tomorrow--we should get a pop on the market and if that does hold--real support is Spx 4400 in that area---a little fear with president regulations-major companies delaying going back to the office, airline ticket sales forecasts lower--- oil could spike and volatility could spike withy it!

    Any ideas here?

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    Replies
    1. Last few tests of 50 day have been mid month. Last small pullback did not make it back to 50 day. I'm expecting 4420

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  28. Although I could see some chop next week it still looks ok. SPX is a dog but reopening trades have been strong. I'll be looking to take profits this month of September.

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  29. There hasn't been a lot of movement coming off a slow summer, but I am expecting the action to increase. The swings will increase in size but similar price action up and down.

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  30. Alright I've been saying since August I had a chart I've been watching and was waiting for the price to come down to a more attractive level. It has and I will be posting the chart shortly.

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  31. will we see spx below 4000 this year?

    thanks

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    Replies
    1. I'm going to say no. As slow as SPX is moving currently it is unlikely to see even a 10% correction.

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    2. What I am saying is we should not set our sights too high. We will get to homerun trades again but for now we should aim to hit singles and doubles.

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  32. Replies
    1. Thanks Louis, let's see if it pops this month.

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  33. AMC has been up 5 weeks straight. May see a down week soon. Maybe next week.

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  34. Next high should be 4600 to 4615 i doubt we break 4230

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  35. Also note if we get into the 4600 area I will be selling and I'm not buying massively

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  36. louie,

    Spx---4420-----could come tomorrow---we will see?

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  37. Well I had mentioned AMC was due for a down week. It is getting a little action to the downside but you know the week is early.

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  38. Borders due to reopen in 1 week. Because we are now in the late stage of reopening we are going to see better swings.

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  39. Let's see if we get a pop into the reopening. Then it may be a sell the news event...

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  40. There is a possibility that we go down to 4334 but if that happens if that happens I'll be a big buyer in my opinion

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  41. This comment has been removed by the author.

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  42. I would definitely be out on the move up I believe we go up end of September into beginning of October I'd be a Seller

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  43. Yes it could carry higher after the reopening too. GUSH up big today!

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  44. First week of October may turn out to be the turn timing Louis

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  45. I was planning to post the charts but it made a reset yesterday. Something is coming I think. Delta didn't generate enough fear so they are getting ready to pull out the bazooka. Planning to post the charts month end...

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  46. What's that smallpox these fucking freaks should be hung for treason

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  47. They are getting ready to ratchet up the pressure. They are making an October push for companies to force vaccination of their employees as a "condition of employment". Not a panic, but fear of the Covid variety.

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  48. This is the beginning of the end for the Fed.

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  49. The Fed can't raise rates and they know it. By creating a problem at the Fed they can end the Fed without having to explain that monetary policy has in fact failed.

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  50. Hi, SC, do you have any comments on the semi conductor index? It made an all time high today. Could it be a sector that is finishing its up move? Thank you!

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    Replies
    1. It's a good point. Still strength there. Some softness in the markets but strength in leading sectors. Markets still in a bull phase.

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  51. sc,

    after todays recovery move---did your charts reset again---the volatility is increasing but not showing in the VIX---it looks like the market is trying to pound out a bottom.

    Tomorrow is feel good Friday or reversal Friday

    Should we hold to Wednesday for the FED meeting --I know you think they are powerless---but I don't see them going away???

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    Replies
    1. I have a Cycle that shows where volatility will spike. Same charts I use for XBI. It will be fun. Months away though from that volatility.

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  52. I am raising cash to ready for a big trade

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  53. Remember this chart from March 8th.

    Shanghai Weekly at resistance

    "China took a swoon last night. That's the market's next problem now that fretting about bonds is over for the time being. FXI drop."

    https://twitter.com/CyclicalAnalyst/status/1369012333817651204?s=19

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  54. FXI has dropped this year from $54 to $38. 30% drop.

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  55. Now traders are getting all worried over China and Evergrande. I think we can see more from China this year but this is just not that serious.

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  56. sc,

    Amazing----no one caught this drop---breakdown ---politicians and wall street ----that was a big move and we missed it.

    Let's see what the future brings

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  57. DOW down about 5.6% off the highs. FXI down 30% off the highs. Let's get right to the point shall we. Who do you think is winning the trade war? China or USA?

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  58. The DOW 50 weekly is about 1,000 lower though at 32,500.

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  59. Dead cat bounce today😺😺

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  60. GUSH may see $65 but looks good to $85.

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  61. Sc / Deena

    I am guessing this means--- we continue to sell off tomorrow---two days at this level is not a good sign---normally we continue the downtrend--we broke out of the channel ---any insight?

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    Replies
    1. Action is picking up after the slow summer. SPX may grind a little lower in a bad week or even the month of September. But all that is happening is it is just getting choppy. Volatility quite low.

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  62. September everyone returns from summer vacations and the action picks up.

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  63. Market starts to get choppy first. Volatility comes later.

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  64. sc,

    looks like three days up here!

    any opinion--or just waiting for the right move?

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  65. I'm waiting for something else entirely. That was a 5.5% dip in SPX. Tiny. Little volatility.

    The only fear worth trading is Covid fear. That is the trade I am looking at next. All the charts and reasoning will be posted. If this plays as I expect it will be extremely profitable.

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  66. sc,

    so your looking for a pharma move?


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  67. Replies
    1. It's Covid as the main fear. China and debt ceiling and these other fears do help to set the tone.

      Because the government is making a vaccination push soon they need Covid fear and lots of it.

      All explain everything and how it relates to the initial panic last year on 2020.

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    2. The WHO: Got fooled again.
      https://www.who.int/en/activities/tracking-SARS-CoV-2-variants/

      https://www.mayoclinic.org/diseases-conditions/coronavirus/expert-answers/covid-variant/faq-20505779

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    3. The Who: Won't Get Fooled Again:
      https://m.youtube.com/watch?v=SHhrZgojY1Q
      Lyrics:

      https://genius.com/The-who-wont-get-fooled-again-lyrics

      Delete
  68. Sc when will you post the s&p chart ?

    Thanks

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  69. SC, do you think we are going to a new ATH?

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    Replies
    1. Yes it will, but it is getting tougher. Momentum is starting to fade

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  70. GUSH showing a lot of strength. Let's raise that target to $90.

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  71. The markets are still ok. The difference now is you will see some dips and selloffs as it goes up.

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  72. SC / Sami

    SPX---4600---should be near a topping formation.

    the fed is trying to hold this up!

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  73. Replies
    1. GUSH may see some more chop though likely heading higher. So there may be a possibility of reloading lower.

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  75. sc,

    I was looking into the information that was posted and then-removed
    can I that post back--just want to write down the information!

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  76. Dunn6sterSeptember 27, 2021 at 8:54 AM
    sc,

    I was looking into the information that was posted and then-removed
    can I get that post back--just want to write down the information!

    I was interested!

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  77. Oil shows strength although the big splash still a few months away.

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  78. So expect one more pullback later this year to enter Oil trades prior to the big splash.

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  79. I still think we are headed up
    Just my opinion

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  80. lou,

    we need a big up ---does the fed have the power????

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  81. Yes SPX interacting with the 50 day average.

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  82. sc,

    Uvxy ---if we get a decent pull back here could we see 35 on uvxy ???--it beginning to look quite possible---we are consolidating at the lows!

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    Replies
    1. SPX just in a consolidation as we wait for the 200 daily moving average to reach current levels.
      Therefore I'm not looking for volatility until next year. Weekly SPX chart is strong.

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    2. I am thinking we may mini crash next week.

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  83. I have many charts and updates on the way. There are some good areas to trade. One market is approaching a turn.

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  84. sc,

    I still expect a high from here next week ---but October will be another down Month--about another 150 points --Spx ---4100

    Damage is already done!

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  85. lou,

    You and I know---Spx 4600---would be nice!

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  86. Nah, we are headed down on S&P. Market Crash on the horizon.

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  87. sc,

    No major vix movement---but very controlled----I am concerned at this level and ---your next new position---I am hoping this is inflation oriented????

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  88. Wonder if the infrastructure bill will move the markets tomorrow, if so, which way?

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  89. sc,

    Too much fear in this market--should see a reversal --either today or early next week!

    way too early to crash this market--

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