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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 18 September 2011

Dow










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4 comments:

  1. Albertarocks18 September 2011 at 17:38

    Hey there CR. When I look at your charts, two things stand out like a sore thumb. The move down off the July high is clearly an impulse, and the multi-bounce mayhem off the August low is corrective. Bulls don't seem to be seeing the corrective part though because it would seem they're quite convinced that Ben is going to announce QE3, 4, 5, and 6 at the next meeting. Their confidence in the Great Uncle is partially blinding them in my opinion. The 60 min. charts sure are suggesting a pullback is imminent. I'm not sure how far, but the potential is sure there for it to be substantial.

    I'd suggested late last week that the 5 day surge that jacked most markets nearly 8% in 5 days was OPEX related. Of course that notion was laughed at roundly, which surprised me because I was under the impression that most investors were aware that the banking cabal is corrupt to the core. If investors don't think it's entirely possible that the bankers were just insuring that their proud record of "not a losing day in the markets this century" may have had something to do with that silly pump job, then they're going to deserve the consequences which I think are in the cards this week. I could be wrong, but hey... at least I'm open minded about it.


    Bernanke has stated numerous times that "we have the tools and are prepared to use them". Ben has also stated that he's watching inflation closely and that 2% is the maximum he's willing to tolerate. It seems that investors have completely discounted the fact that the tools that Ben refers to include a potential hike. I wouldn't be the least bit surprised if Ben hints at the next meeting that inflation is now becoming a concern and that a very small hike is possible. 2 percent is his limit? Guess what, we're there:

    http://econintersect.com/wordpress/?p=13248

    Bernanke has already admitted that he's going to pin the rate on the 10 yr. bond. He's also admitted that it will come at the expense of shorter term treasuries. That alone implies higher rates in the shorter term, and indeed LIBOR in London is surging as if in sympathy with his very words. I've pointed that out numerous times and the response seems to be something akin to "Wow, LIBOR sure 'is' surging." And in the next breath... "so it sure looks like we're off to a new bull market." WTF? Can't people put together 2+2 and come up with 4 anymore? The hints are everywhere. Admittedly, the recent market action has the daily charts looking pretty darned bullish. I think most investors look at the weekly charts and consider them to be bullish as well. I sure don't, since we have seen no positive divergence in them yet, something that is almost a 'must' before we see a bottom. The bottom is not in. At least, that's my story and I'm stickin' to it, lol.

    Thanks for your charts bud. I hope things are going well in Epsom. Until next time...

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  2. Anonymous18 September 2011 at 21:31

    http://img42.imageshack.us/img42/926/djiaweekly160911.jpg

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  3. Chartrambler18 September 2011 at 22:41

    Hi AR....wow - that is quite a post...I am honoured ! Agree with you the TA looks very bearish to me but we've all become suspicious of our own shadows in this kabuki world.I like the setup though..if its a triple top its a bear setup with low risk when we get the reversal...if not ,let it run.
    Am well,but to quote JB Priestley I am "engaged in the vast muddle of removal" and it is exhausting ! Thanks for your input,appreciated as always

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  4. Chartrambler18 September 2011 at 22:42

    Thanks Highrev...can see the bullish weekly candle (even clearer on the DAX) ...lets see how it pans out ...I will wait for a reversal to confirm the setup...or not.Time does favour a top soon ,though,imo

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