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Wednesday, January 27, 2021

Elliott Wave Update ~ 27 January 2021

Update:

They are back. Tomorrow should be a wild ride

Most Shorted Names Soar After WallStreetBets Reopens | ZeroHedge

Update:

The "Elites" are determined to crush all opposition and any perceived threat, real or imagined to their raw thirst for power. Those on the Right and those on the Left. And of course all those in between too if it comes to that. There really is more in common between those who are banned than people think. 

r/WallStreetBets has been banned. And then went private? And vow revenge.

What is funny is that they can damage everything in reverse too. Do you know there are more ETFs and derivative vehicles than the underlying stocks and bonds themselves? The market is insanely leveraged and has been structured in such a way that makes it extremely dangerous.  This overleveraged behemoth of a "free market" will come back to haunt the elites.

The dominance of HFT machines sucking sub pennies out of everyone and anything will come back to haunt them. 

The use of "front running" flow orders of "little people" Robinhood traders such as those on WallStreetBets will come back to haunt them.

The years of "wisdom" of selling the idea that "pro" fund managers can do a great job and produce wealth will come back to haunt them.  The "pros" are now passive managers too. They ain't doing anything except buying an index fund. A weekly injection of borrowed crap.

And having "hedge funds" dominate the market as they did in the collapse of 2007-2009 will come back to haunt them.

LOL what if the subredditers WSB learn how to short the hedge funds, banks, and other targets en masse? After all, there are vehicles to do this. ETFs, options, and direct shorting. What if the front-run flow orders are all sell, sell, sell? The HFT machines will have no choice but to spoof the market lower.

Ah. don't count out the "little guys". Remember it is the meek who shall inherit the earth.

And oh yeah, look at that volume action on the composite? See the volume ratios? The market is broken. It won't take much to topple it over, there is simply too much rot underneath.

Of course the HFT machines and all the computers trading to each other has produced this madness of a one-sided option market which has produced the gamma causing the market to go parabolic.  When the elites are now "punishing" the little guys for daring to participate in the very thing the elites constructed themselves....well...I can only suggest that things will work going the other way also.

Biden doesn't care about the stock market. Indeed, I don't think he is aware of much of anything lately. Actually since Trump was FOR the stock market, you can bet the new regime will be AGAINST. They don't care if it drops 15,000 DOW. If it means the "little people" get crushed in the process, all the better.

Update:

Having a chance to look at today's carnage, here is a potential "top" count of the Wilshire. Record volume day. That is a bearish development considering its a day after a "peak". And the little wedge at the top may say it all. All in all, a very satisfying structure.  I won't be disappointed if the market goes no higher, my upper 42,441-42,485 was looking ok (who knows) but it really was just a mental exercise trying to keep a handle on this juggernaut of a market.  But there has been some technical damage inflicted and we have a small impulse lower. 

Simply put, we had to be mentally ready for further upside (and we haven't broken any pivots just yet....) 

However, 

We also have to be mentally ready for what I have been predicting all along: A complete collapse of the entire market and the beginning of true price discovery across the entire spectrum.

Maybe we get a two-fer! Continued short squeeze drama in the most shorted stocks and a total market collapse! Won't that drive the elites absolute bat shit crazy??? Hey, it happened today as the DJIA finished a tidy -633 and no one bailed on the shorted stocks....

ORIGINAL POST

LOL! LOL! LOL!

I never had a funner day watching the stock market! From pre-market amazement looking at Gamestop's mega-squeeze, to the afternoon announcement that the Biden administration and the abominable Yellen were "monitoring" the situation with Gamestop and the markets.  In between you can tell there was a whole lot of panic by the "big boys" and you could read between the lines and see the libtards at Marketwatch getting madder and madder as the day went on at the thought of deplorable Redditers wiping out Wall Street hedge funds. It was almost as if Trump himself was forcing the squeeze such was the reaction. (LOL! He is permanently in their heads!)

Premarket, GME was trading above $300. AMC was exploding.  And then futures started sliding. Since the Fed cannot directly bail out hedge funds (or Citadel - at least not openly just yet), the best they can do is (hypothetically) sell futures and put a damper on the entire market thereby snuffing out the squeezes.  Of course the idea is to sink everything to stop the squeeze bleeding. But it didn't work, at least not today. As the DJIA plunged 500+ points GME was rock-solid above $300 and AMC held up. 

And a bunch others. 

In fact the stock  - MAC - I pointed out last night (I found the short list from ZH, I have to give them credit) traded above $26 before going red and then after TD Ameritrade announced they were limiting GME and AMC trading, MAC took off again and finished the day higher. And it cleared long term resistance on record volume.

Will the SEC have to step in and ban trading in the list Zero Hedge provided on Friday to stop the bleeding?

After a very negative market open, you could see the stories come out on Marketwatch how "sad" it all was and that people were going to get hurt and its "market manipulation" by the Redditers or something. The comments in the articles said it all. Stick it to the man!

And you had comments from SEC and other "authorities" on how this could all be illegal and market manipulation. 

Well none of that worked. So TD Ameritrade, (on who's orders?) decided to "restrict" trading in GME and AMC. But they still traded high and other shorted stocks were quietly exploding also.  And of course the announcement of the Biden administration. They really hate the little guys don't they? Like I said, the reaction from the usual libtard suspects' made it seem like Trump himself was behind it all! 

LOL (it is funny, but yet it accurately reflects the sentiment of the people):


So now what? I knew the trade was heavily exposed when a lady of some older years asked me today "what is a short squeeze?" - she had heard it on the radio. Even VOX came out and did some 'splaining on the squeezin'.

Think its over? LOL! I hope not, its just too entertaining and the hedge funds have (and get) NO sympathy at all - not from the right, nor left! Will they (attempt) to plunge the markets to "rescue" Citadel and others from a few more billions in losses and get the real bear wave (c) rolling? Do they know what they are doing? LOL!

(hey don't they have to cover the short selling of overnight e-minis at some point??)

THE COUNTS

This chart sums it up pretty much. We either are approaching a wave [iv] low (or it is now "in"), or we had a market peak and today was the first impulse lower. We shall see.

I'll have more. Either tack on some charts or up top with more commentary.

Wilshire weekly. It may be over. A solid rejection from the upper  channel line.


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