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It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford


Those who surrender freedom for security will not have, nor do they deserve, either one. Benjamin Franklin
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The idea that you know what is true is dangerous, for it keeps you imprisoned in the mind. It is when you do not know, that you are free to investigate. ~ Nisargadatta Maharaj

Sunday 1 April 2012

Ftse

Quite a lot of technical damage done last week






Posted by at

7 comments:

  1. Albertarocks1 April 2012 at 15:21

    As it turns out, I think your focus is on the right target with this set of charts CR. You probably know by now that I've really been struggling lately with some data that is really trying hard to convince me that the entire notion of any potential deflationary outcome to the world's woes seems impossible. History says otherwise of course, but it appears to be a case of "history is history, Goldman Sachs controls the future".

    In any case, since you were kind enough to have contributed one of these charts to my site, I'd like to contribute a list of stats to you and your readers that pretty much blows my mind:

    Bank of England - annual rate of printing in the past 3 months = 67%

    European Central Bank - annual rate of printing in past 3 mths. = 89%

    From Nov. 25th through to the March peak in each individual stock exchange, the following markets have behaved thusly:

    Annual rate in increase in the FTSE since Nov. 25th= 72.96%

    Annual rate of increase in the S&P since Nov. 25th = 82.24%

    Annual rate of increase in the RUT since Nov. 25th = 104.21%

    Annual rate in increase in the NDX since Nov. 25th = 116.80%

    Annual rate in increase in the CAC since Nov. 25th = 128.21%

    Annual rate in increase in the DAX since Nov. 25th = 159.25%

    *As a passing interest, the average of these rates = 110.61%

    As you can see, of the 6 major bourses listed above, since the Nov. 25th low (every single one of them bottomed on the same day), the FTSE was the weakest by a fairly wide margin. I think the FTSE is now the canary, much like the Russell is the canary in the USA.

    [FOOTNOTE: The source of the data on the rates of money printing by the BOE and the ECB is James Grant. The source for the performances on an annual basis for all the exchanges is Albertarocks.]

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  2. Chartrambler1 April 2012 at 17:54

    Thanks AR,interesting data.So does FTSE drag the US down or does the US drag FTSE up ? Someone on Dan's board suggested it was actually China that was leading.I think FTSE is the more interesting chart as it encompasses both China (through commodities) sensitivity and Europe.

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  3. Albertarocks1 April 2012 at 18:17

    That's a key question isn't it buddy? Which is the cart and which is the horse? It's always the same question I ask myself and get wrong more often than not when I see divergences in indicators such as the MACD. The answer to the question probably lies in the question "Which way is the larger trend headed?"... that is until the day the larger trend itself reverses. It's 'that' reversal that we always seem to be anticipating.

    But I also think the FTSE is a rather key Index in that London is 'still' one of biggest, if not 'the' biggest banking capital of the world. I've always viewed it as being the "darling" of the dark lords. And if they can't keep that one up they probably can't keep any of them up. I could be out to lunch with that theory, but I think there's a certain amount of validity to it.

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  4. Albertarocks1 April 2012 at 19:16

    I wonder what happened. I replied CR, but that comment isn't here now.

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  5. Chartrambler1 April 2012 at 19:52

    it was in the spam bin !

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    Replies
    1. Albertarocks1 April 2012 at 20:03

      Unreal especially since it didn't even contain a link. Such is the effect of having had so many of my comments flagged 'you know where'. Thanks for retrieving it because that teaches the spam patrol to leave me alone. Pretzel does the same thing.

      Thanks CR :-)

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  6. Chartrambler1 April 2012 at 20:56

    not at all,thanks for the post bud

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