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As Yields Continue To Rise The Pain Trade Continues

August 17, 2023
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Good Evening,
QQQ was down 1.09% today to close at 358.58 and we continued to see Big Tech Sell off, with volume picking up as we got closer to the close at 4 PM

A very important characteristic of a bull market is we open weak flush out the weak hands, get shorts in and then run the market with institutional buying.

at or near the end of the day and the day traders that short in the AM cough up their stock which makes the close even stronger.  Bear markets will either open down and keep getting hammered or the Market Makers will push stocks up at the open and towards the end of the day the institutions and hedge funds and day traders all sell and by 3:15-4pm the Big Tech stocks rollover and we close, set them up and do it again. Just like in a Bull market we get counter trend rally’s the same holds true for bear markets. The easy Money has been made. I had our members and anyone who would listen go short tech. We rode UPST from $60-$32 and just raised our buy stops to make sure we lock in profits same with NVDA which we are short from $280 -and TSLA which we are short from $299 and closed at closed at $132 today. We have also had great trades in between. The Nasdaq should continue down from here as I believe we have a long way further down to go, just be on the look out for a dead cat bounce coming soon to take out all the late comers that Claim they trade price action but they can’t go short until we break the 50 DMA.  We do have resistance at $362.58, and $366. The NASDAQ 100 is already down close to 10%  from where we went short. I use my Dark pool and Options Algos and that’s how I was able to call the Market top on July 17th. You can be the best price action trader in the world but if you don’t have tools to give you an edge over every other Tom, Dick and Harry and the Goldman Sachs of the world that come out and say don’t buy the dip…Now they finally woke up after they had their clients out 2 weeks ago. I digress. The QQQ’s have some support. Just below in the $354-356  Zone and if we break $353.79. If we break $353.79 which is the next critical support so if we break and close below that level, then we will see major capitulation.  SPY Will follow the QQQ’s say pay attention to the QQQ’s and the $VIX…. SPY will follow.

SPY was down 0.76% today to close at $436.29. I mentioned that once we broke critical support of $441 that we would most likely see the low 

$430’s which is the most likely scenario but remember we have a lot of individual investors that just pilled in on the short side with all the Amateur newsletters and You Tube BOOB’s 

And the market likes to damage the most people as possible as we have seen the pain trade, which is holding equities especially big tech, while rates move higher. And we have seen that pain trade because a lot of misinformed longs a tremendous amount of pain has been inflicted so far and will continue over time with minor counter trend rallies as bumps intraday or Bumps in the Short Term Road because the trend is clear and it’s a Down Trend until it’s Not. So, watch the price action and look for resistance at $439.90, $443.50 and $445.58. Support for the bulls should come in around $433.55, and the $431.75 Zone.  Pay attention to all these key levels and let the chart do the talking and have a great night.


G. Allan Collins




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