August 10, 2023
G. Allan Collins 11:45 PM
Good Evening,
The Markets had trouble holding on to its gains and we had another key reversal day.
It’s not often that I fell with 100% certainty that something is going to happen in the market, but I called the Market Top on July 27th before the market even closed, and this has been one of those situations since that call.is one of those instances. If you look above at the chart, you will see what’s called the triple black candle. Basically, you’ve got a first black candle on the chart and a second one, and at the key level where normally banks would come in and try to buy up the market known as buying the dip. Then You get the third black candle. This is highly a highly bearish set up, especially if the third black candle is a bear black candle, because it represents A trend change. It’s a shift. And clearly, we’re here. We have a double top. We have a definite divergent on RSI, but when you have three black candles, two at the tops and one at a major area which is supposed to be a support, we’re now in the conditions in the market where a lot of traders are going to be getting short or going to cash. It is very possible they will continue unloading the big Cap Tech stocks, so if you see heavy, heavy selling and you are not short I suggest getting short because as I have mentioned, August is historically the worst month of the year on average because of seasonal challenges and the fact we were only up 40% YTD. Watch the VIXX because we are at a dangerous level where we could bounce to 18-20 quick and If you see the VIXX over 20 then look out below sir. Use Stops to manage risk and you can use the same support and resistance levels from yesterday.
