CNN Fear and Greed Index - Extreme Bullishness Leads Market Turns.
CNN Fear and Greed Index - Extreme Bullishness Leads Market Turns.
Sentiment Trader Dumb Money Confidence Index - High Dumb Money Confidence Leads Market Turns
Sentiment Trader Dumb Money Confidence Index - High Dumb Money Confidence Leads Market Turns
Sentiment Trader Smart Money Confidence Index - Follow the Smart Money at Extremes

Good Morning:

  • In addition to the bears finally realizing that we are in a strong bull market leg too late, three confirmed Chinese spy balloon ships flew over the U.S. and Latin America over the weekend.
  • There are unconfirmed reports that Chinese balloons also flew over Canada and Alaska.
  • And no matter the fake news, more than 20 Trump officials and Democrats confirmed that there were never any Chinese balloon flights during the Trump years. Common sense is all you need to see through this Orwell Administration “disinformation.”
  • In addition to failing to protect this Country, the Orwell administration lies through their teeth at every turn. Note the false and unbelievably overstated jobs report Friday. They did the same thing last year and quietly revised the report downward by 2 million jobs the following March. Everything is a lie or cover-up. The Orwell administration is beyond incompetent. They are a despicable group of misguided, communist, authoritarian crooks. 
  • I am convinced that this Orwell Coup is purposely trying to destroy this great Country to invoke their New World Order to be run from the World Economic Forum (“WEF”) in Davos. The U.S. must go, Russia must go, and China must g,o so there is no remaining opposition to the WEF scheme. All WEF leader Klaus Schwab needs is a white kitty to be the villain in the next Bond movie.
  • Speaking of movies, in addition to “Red Dawn,” watch or rewatch “Don’t Look U.”. The latter film truly captures the moment.
  • Remember that the Chinese balloons are designed to deploy nuclear EMP devices to take out our power grid. Only by God’s grace (and China’s) do we still have a country this morning. We are beyond vulnerable with President Orwell and his puppeteers in charge. 
  • Our way of life, and many lives, could have easily ended over the weekend. Millions of our fellow citizens could be freezing right now (and eventually starving) with no power. As we returned to the dark ages, not a single brick would have been damaged by an EMP device. Chinese soldiers would simply be parachuting in to take us over. 
  • China could easily deploy more soldiers than our total population, even with our millions of uncounted illegals. By the way, Chinese soldiers aren’t girlie men like Generals Austin and Millie. Nor did their soldiers take the Clot Shot as ours did. China must laugh while the greatest Country ever known to planet earth flails in the wind due to the 2020 Globalist Coup.
  • In my lifetime, I have never felt so unsafe in my own Country. Nor have I ever seen our Country deteriorate so fast in such a short period.
  • By the way, our Country deploys balloons in our skies to spy on U.S. citizens.
  • They waited to shoot one of the balloons down over the ocean for two reasons. First, they wanted to be sure that the balloon didn’t belong to NSA. Second, if it did belong to China, they did not know whether our military would inadvertently deploy a Chinese nuke.
  • Now, it is conceivable that China paid the Orwell family to allow them to spy on us. I have an email out to Hunter Orwell to confirm this. But I got an automated reply to send money to a Cayman Islands bank.
  • Rumor has it that when they recover the balloon from the ocean, it will have a fortune cookie as its payload. It will probably say something like “the strength of a nation derives from the integrity of the home” Confucious.
  • Anyway, this is more about warning the U.S. as China prepares to take Taiwan than it is what they paid the Orwell family to do.
  • Because we have deployed similar balloons over the Country to spy on U.S. citizens, the Chinese thought their balloons would blend in.
  • Anyway, folks, something big is coming, and it won’t be good. Be prepared. This administration and its globalist, authoritarian puppeteers are taking us into World War III. They all have bunkers, do you?
  • Meanwhile, back at the stock market, we got the turn Friday predicted by the Navigator Algorithm augmented by a very sophisticated weather algorithm. There is a high correlation between the weather math and market turns. There may be an independent cause that affects both. Realistically, however, they are driven by similar cycles. The next date is 2/23.
  • Additionally, the daily chart is in a parabolic rising wedge. The angle is unsustainable.
  • So the market is likely to continue dipping or move sideways.
  • Also, sentiment has shifted to extreme bullishness, and the dumb money index is hitting records.
  • One possibility is that we start the dip into the 20-week cycle low, though it seems a bit early for a bullish leg this strong.
  • And keep in mind that it has paid to buy with the machines on the daily chart at the five-day line (4126.25 on the futures). A good strategy is to buy on or slightly below the line with a reasonable stop until it stops working.
  • But the full octave takes us to the August high near 4329. Right now, the price is half an octave.
  • My best guess is that we move sideways or correct a few days before attempting another run.
  • The Founders’ Group offloaded most of our position Thursday, and we hold a runner, with a stop on a close below the five-day line.
  • Depending on conditions, we will look to add to the position on visits to the five-day line.

These are dark and dangerous days, my friends. Make sure you have a Plan B.

A.F. Thornton

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