The Crashdaq Bull Trap

Aug 4

The propagandists on social influencing site Reddit had been squawking for days about how Korea was in sell off mode and the AI bubble popped.

The signs were hard to see, but the target was the May monthly low of approximately 27,500.

And now after the sweep, a significant 1,500 point retrace back to 2,900 to start the August candles has retail feeling bullish, again because the propagandists and Discord groups say so.

The state of the world, including the hallucinations with AI, are all underpinned by the Chinese Communist Party's persecution of Falun Gong.

The CCP over the last 27 years has gone so far as to organ harvest Falun Gong practitioners, selling the proceeds on the international black market.

The US International Rules Based Order wants you to believe that its AI chip controls are to reign in the CCP, when it really just creates another vector for the Party's United Front Work Department to corrupt people at different levels through its Mayi Banji shipping and exporting network.

Let's look at the daily chart:



What I expect to happen is that the Auctioneer will drive price below 27,000, which will take out the stops below the July low, mostly by liquidating top longers to the tune of 2,000 points.

Which also means a purge or another sweep under 27,000 is an excellent buying opportunity, for you can expect that "The Ponzi Will Always Continue" and 31,000 will be broken before the end.

The end of this cycle is likely characterized by a blow off top, and these are precluded by some fear, uncertainty, and doubt chop.

Aug 4

Trade active

Right now the trading pattern is set up for a raid on 30,094, which is the peak of the triple flat top "resistance" level in August before the descent to 27,500.



If 30,000 becomes resistance again, then we'll see more fear, uncertainty, and doubt.

Aug 5

Note

Not that I really believe the Auctioneer won't take out 30,000, but the fact that price action meandered around under it and sold off 1.5% during New York Wednesday is telling us something.



Quad tops with lower highs are a pretty rare pattern, but even TSLA did it a few years ago.

Right now, the bull trap thesis is still standing.

Aug 7

Note

Like I guess this is still the part where we raid 30,000 or I'm wrong and it just straight runs 30,000.



But the more time it takes the less bullish it is. Especially compressed volatility on a Thursday/Friday is not moonworthy.

Aug 11

Note

In my eyes this is now confirmed bearish due to time bias. 30,000 is being painted as such resistance that it isn't even being touched.



Multiple days are passing with NY trading session not being favourable to longs, and volatility is being suppressed, which is crushing QQQ options buyers and printing for QQQ options sellers.

Until there's a change of character, this is a confirmed bull trap, in my opinion.

Aug 13

Note

Now the question is, is it a liquidity purge above the highs?



Or is the call just wrong and the race to the bottom is simply later?

Aug 20

Note

Price action confirms the theory that 30,000 was merely a liquidity purge.



With the most recent low being taken out on the 4H and the market not bouncing, there isn't much on the way down in terms of objectives, which means we anticipate a lower low at 27,000 or a double bottom at 27,300.