NQ Sells Off "We Warned Yah"
Twitter convo we had yesterday
So one of my trader peeps on twitter posted this chart yesterday:
To which we promptly replied:
So its nice to see at least one of the market controllers today had the keen sense to run the sell program and run stops. Although they didn’t take it to the level I would have, they did get it down to 10742 so far! The day isn’t over yet! But we know one thing, a close below this major market support at 10900/20 area is very very significant for us and most likely for many:
Here is the latest equity picture:
We posted this SP chart and highlighted a possible analog setup here with the Covid sell off. No doubt AI and ML processes are discounting the odds here and analyzing liquidity and position data to match with future news narrative forthcoming, because you know, that we know, nothing is ever random:
As for the other markets:
Interest Rates is seeing the Ultra weaker and long end leading the way slightly lower:
FX markets are mixed to slightly lower:
Energy and Metals markets where we continue to watch that Silver fail at $27.40/50 and watching Copper strength here as its running into some technical resistance of significant long term target reversal level at 3.1085:
Magnelibra Capital Advisors Global Benchmark Futures Program continues to move in a defensive hedged mode and believes that this is a start of another major topping formation in equities as the risks continue to point toward complacency both technically and fundamentally. The main risks we are sighting are:
Election results will not be settled on Nov. 3rd and no matter what this will bring massive uncertainty and unrest to the Blue States / Big Cities as the Left will never accept a Trump victory.
This means regulatory/tax/stimulus efforts will be up for grabs and businesses will not be able to make adequate forecast assumptions in relation to possible business affects.
The commodities markets and the FX markets are telling us that the US Dollar may continue to slide and that all this debt creation is going to start to take its toll on prices.
Valuations are well above historical’s solely at the discretion of QE and QE only as we highlighted yesterday the FED continues to buy $30-$40Bln a week, there will come a point and time where this buying becomes sterilized and impotent.
Volatility remained elevated and moved higher as equities made new highs, this tells us that the move was based off of option hedging and forced Gamma related buying leading to asymmetrical outright equity option trade set ups which we highlighted, which now are major winners for some very smart dudes. Remember VIX was down under $10 for a long time and Covid permanently raised the bar there.
-Speaking of gamma the flip today in the QQQs comes in at $270 where we will see notable selling occur which it has (zhedge chart):
Speaking of Covid, yea this nonsense will get worse as Flu season hits and no doubt we will begin to count flu cases now just to get the public even more fearful and panicky. What’s interesting to us is that if masks do anything, which we believe they do not as a virus is a 125nm and lets be honest, nothing will stop them. What is interesting though is if masks were that effective, then why the hell weren’t they recommended many years ago to combat flu? Why didn’t everyone where them all winter long? Is there something new, some great revelation that now all of a sudden these things are effective?
To bad my father a 45 year trauma surgeon wasn’t still alive, I would love to have taken his opinion on how things have transpired over the last few months, what he thought of the virus, our behaviors. Well I can only opine as to what he would say, I know one thing, he would never consider himself an “essential worker” because he was a doctor, a surgeon, he would humbly consider it his job his duty.
Secondly in regard to the masks and fear, he would remind me that he had to hide in fox holes from the Japanese as they invaded his village, he would remind me that his mother died because of a bad illness during this time, he would remind me that we don’t know what real fear is, he would remind me that no matter what and under no circumstance are we in control of our own lives, rather he would plainly say, go to work, live your life and do your job and wake up and do it all over again, no questions asked. That’s my model, that’s my inspiration and that’s the kind of mentality that’s been drilled into my head since birth. Fear is the enemy and fear causes the mind to make mistakes, which can then lead to even worse unintended outcomes.
We will be back later with the settles, we may start doing update videos as well, we can go over technicals and markets easier that way. Ok have a great weekend and we will keep you up on the settles and any closing remarks we may have cheers!
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