And the rest will follow like a row of domino's. This place has been deliberately run 17 trillion dls. in debt. in an insane dash to collapse this economy.This scheme to FORCE U.N. global governance on us is NOT a lunatic conspiracy theory.
To be honest, the video is backing up some pretty good data that seems to be aligning. The "Hindenberg" effect is presented here by Bob Rinear of Invest Yourself newsletter: " Warning! Danger Will Robinson! Remember the robot from the old Lost in Space TV series of the 60's? Well right now the market is flashing warning signals all over the place. Why? A combo platter of reasons really. First and foremost is the argument about the tapering or not tapering that I commented on in the commentary. Everyone knows that if the Fed tapers the amount of money they inject, the markets will fall in respect to the size of the taper. But there's other things brewing, many of them technical. If you're a chart slave, you're familiar with the idea of the "Hindenburg" omens. First off, what are they? Well they're a cluster of technical factors that taken together often signal something "bad" is coming. Here's some of the traits:
The daily number of NYSE new 52 week highs and the daily number of new 52 week lows are both greater than or equal to 2.8 percent. The NYSE index is greater in value than it was 50 trading days ago The McClellan Oscillator is negative on the same day. New 52 week highs cannot be more than twice the new 52 week lows
Now if you believe the stats, and I think they're close, we find that...within 40 days of a Hindenberg there's a 77% chance of a 5% drop. 41% chance of a panic sell off and a 24% chance of a major stock market crash.
That is why they're so "looked at" when they appear. But like all things technical, they don't always work. For instance there's never been a market crash without a Hindenburg preceeding it. But, there's been many Hindenburgs that didn't produce any drops. So why the problem this time around? Because if you see "one" Hindenburg, you can often ignore it. But when you get clusters of them, they tend to mean more. Well, we've had 4 of them in a week. That's a cluster all right.
So beyond the cluster of Hindenburg's we have more "interesting observation". If you take a long term snapshot of the market, you can make the case for a monster "megaphone" pattern, often called the jaws of death pattern. They resolve themselves basically 100% via a major market fall. I'm talking 50%.
Add up the size of the run up, the increased chances of a taper, the lousy technical's, and you have the ingredients for a market that is struggling to hold up. While we can always find a stock or two that is still able to move higher on poor market days, the fact is the selling has been pretty wide spread. I'm not surprised.
Thus we are a bit concerned. Unfortunately, we have 6 weeks of this "taper on, taper off" argument to wade through before we ultimately find out if they're going to yank the plug or not. 6 weeks in this market is more than two eternities. We'll see them talk about it, then ignore it, then talk about it more day in and day out. We could very easily enter a wicked period of ups and downs and recently we've seen just that. Just a couple days ago we were up 80, went all the way down to red by 40 and back green by 60 to end the day up just 30+. That's a ton of movement in one day. Expect more days like that.
So, we've entered a time where the ONLY thing that truly matters is the Fed and their printing press. Forget the blowhards on TV telling you how great things are and that we don't need the Fed. Ask Detroit how they're doing. Or Chicago. Ask the now "new record" food stamp recipients how things are. I can see no way for the market nor the economy to hold up if they do start tapering. So, if they do it...this is going to get awful interesting." Porter Stansberry of Stansberry and associates is also predicting a collapse. Jim Rodgers, comodity guru is predicting a collapse. I try to err on the side of caustion when investing in the casino called Wall Street.
Hope they wait till January 30, then I'm ready.
ReplyDeleteGood deal.
DeleteAnd the rest will follow like a row of domino's. This place has been deliberately run 17 trillion dls. in debt. in an insane dash to collapse this economy.This scheme to FORCE U.N. global governance on us is NOT a lunatic conspiracy theory.
ReplyDeleteAll conspiracies seems to be facts these days.:)
DeleteTo be honest, the video is backing up some pretty good data that seems to be aligning. The "Hindenberg" effect is presented here by Bob Rinear of Invest Yourself newsletter: " Warning! Danger Will Robinson! Remember the robot from the old Lost in Space TV series of the 60's? Well right now the market is flashing warning signals all over the place. Why? A combo platter of reasons really. First and foremost is the argument about the tapering or not tapering that I commented on in the commentary. Everyone knows that if the Fed tapers the amount of money they inject, the markets will fall in respect to the size of the taper. But there's other things brewing, many of them technical. If you're a chart slave, you're familiar with the idea of the "Hindenburg" omens. First off, what are they? Well they're a cluster of technical factors that taken together often signal something "bad" is coming. Here's some of the traits:
ReplyDeleteThe daily number of NYSE new 52 week highs and the daily number of new 52 week lows are both greater than or equal to 2.8 percent. The NYSE index is greater in value than it was 50 trading days ago The McClellan Oscillator is negative on the same day. New 52 week highs cannot be more than twice the new 52 week lows
Now if you believe the stats, and I think they're close, we find that...within 40 days of a Hindenberg there's a 77% chance of a 5% drop. 41% chance of a panic sell off and a 24% chance of a major stock market crash.
That is why they're so "looked at" when they appear. But like all things technical, they don't always work. For instance there's never been a market crash without a Hindenburg preceeding it. But, there's been many Hindenburgs that didn't produce any drops. So why the problem this time around? Because if you see "one" Hindenburg, you can often ignore it. But when you get clusters of them, they tend to mean more. Well, we've had 4 of them in a week. That's a cluster all right.
So beyond the cluster of Hindenburg's we have more "interesting observation". If you take a long term snapshot of the market, you can make the case for a monster "megaphone" pattern, often called the jaws of death pattern. They resolve themselves basically 100% via a major market fall. I'm talking 50%.
Add up the size of the run up, the increased chances of a taper, the lousy technical's, and you have the ingredients for a market that is struggling to hold up. While we can always find a stock or two that is still able to move higher on poor market days, the fact is the selling has been pretty wide spread. I'm not surprised.
Thus we are a bit concerned. Unfortunately, we have 6 weeks of this "taper on, taper off" argument to wade through before we ultimately find out if they're going to yank the plug or not. 6 weeks in this market is more than two eternities. We'll see them talk about it, then ignore it, then talk about it more day in and day out. We could very easily enter a wicked period of ups and downs and recently we've seen just that. Just a couple days ago we were up 80, went all the way down to red by 40 and back green by 60 to end the day up just 30+. That's a ton of movement in one day. Expect more days like that.
So, we've entered a time where the ONLY thing that truly matters is the Fed and their printing press. Forget the blowhards on TV telling you how great things are and that we don't need the Fed. Ask Detroit how they're doing. Or Chicago. Ask the now "new record" food stamp recipients how things are. I can see no way for the market nor the economy to hold up if they do start tapering. So, if they do it...this is going to get awful interesting."
Porter Stansberry of Stansberry and associates is also predicting a collapse. Jim Rodgers, comodity guru is predicting a collapse. I try to err on the side of caustion when investing in the casino called Wall Street.
Thanks and an informative article.
Delete