Founder's Trading Journal Balloons, Buffoons, and a Pullback by AF Thornton Feb 7, 2023 0 Comment Chinese Balloon EMP Nukes - Tested in 2018 Good Morning:Indulge me in a few more paragraphs on the most serious nuclear risk our Country just escaped.Someone needs to let the Orwell regime know that “it’s Trump’s fault” is complete bullshit and doesn’t fly anymore, no pun intended.After every relevant Trump official denied any Chinese balloons flew over our Country during Trump’s watch, including the haters, the lie changed as it often does with these despicable communists running our nation.The new lie was that General “Mad Dog” Mattis decided not to tell Trump about the balloons because Trump might overreact.This flies (no pun intended) in the face of common sense. First, how did General Mattis earn the nickname “Mad Dog?” I don’t think he got the nickname because he is a wussy. And he would not have taken kindly to China breaching our sovereignty. And if he really had withheld the information from President Trump, it would be treason punishable by death.Second, how can anyone possibly overreact to China’s dangerous and provocative violation of our airspace with a balloon carrying a payload that could take out every electronic instrument in the Country that did not have a Faraday Cage protecting it?Anyway, the Deep State forgot to send Mad Dog the memo because now even Mattis says that the Orwell Administration is lying.But the distraction works no matter what, and some people will believe it. The proof it works is that I am even discussing it on these pages.This is a moment when you must keep your eye on the ball. Do not enter this stock market without a stop.The bottom line is that China just flipped us the bird and humiliated the U.S. on the world stage. The Orwell administration and their Globalist backers have destroyed our country in two years. They have to go – no matter what it takes – or we will be speaking Mandarin.China showed the world that it is better to align with them than the fat, lazy, feckless, woke Americans – obsessed with nonsense. Folks, President Biden and his cabal are going to get us all killed! I don’t know about you, but I had no bunker to hide in while the balloon traversed our Country. I’ll bet the cabal were comfortably nestled in their bunkers until the risk passed! S&P 500 Index Futures - Hurst Cycle Analysis Meanwhile, we are back to cash, having sold our remaining runner at yesterday’s close.No matter what cycle format we choose, Gann or Hurst, we are in the zone for a peak. If we begin the nominal 20-week Hurst cycle, the market will take out the 20 and 40-day VTL Trendlines in the chart immediately above.4000 is likely to be tested if the price falls through the trendlines. The level is likely to be a key dividing line in the future.We will be in the Trading Room on Wednesday and Thursday. Today is a difficult session to day-trade due to Fed Chairman Powell speaking later this morning. He will likely walk back the dovish interpretation of his Press Conference last week.Be aware of the risk of a short squeeze to take the market higher if Chairman Powell remains doveish. Also, watch for the head fake. The ultimate target for this rally leg from October remains the August 2022 high at 4325 if the 20-week Hurst cycle does not intervene. This could happen in a blow-off of sorts up to that level.Look for a True Gap down at the open and apply Gap Rules.A.F. Thornton
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AF Thornton Website: https://tradingarchimedes.com A.F. "Arthur" Thornton is an expert in logic, risk/reward quantification, market fractals, pattern recognition and asset class behavioral analysis with 34 years devoted to developing algorithmic and quantitative trading systems. In addition to trading his own capital, Mr. Thornton designs custom algorithmic and quantitative trading systems for a small and exclusive group of exceptionally qualified traders.