Ponzi-Regimes to the Rescue

By: Joseph Russo | Sat, Aug 11, 2007
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Kindly indulge us - as we pen this week's intro with the spirit and dark-humor of a Dennis Miller-like rant.

We cannot help but find it quite amusing that:
The titan institutions currently adhering to egregiously mutated paradigm-doctrines, handed down by their founding architects - the global cartel of central banks - (financial engineers of worthless marked-to-nothing fiat-paper) suddenly find themselves scrambling to affect "rescue" across a broad spectrum of over-bloated markets, from a systemically induced crisis of inevitability - spawned from the godfather of all Ponzi-schemes from which they preside.

In a rather twisted analogy: (To wrap this rant)
The above is akin to continually re-appointing a board of known-pedophiles and sex-offenders to preside over a conglomerate-monopoly of worldwide-playgrounds and child-care centers. Having provided such board appointments with full-unfettered power in maintaining hands-on controlling interest, (for reasons yet established by the author) we then collectively harbor the brilliance of mind, to rely exclusively upon the appointees for remedy, savior, and solution to the vicious cycles of child-abuse repeatedly experienced on their watch. - Have we all gone completely mad?

Making Waves:
From our perspective, the only remotely positive effect of such compounded, incessant meddling in supposed free-markets - are the unmistakable footprints of Elliott Waves - which remain clearly marked in the wake of such malfeasance.

The Week in Review:

GENERAL EQUITY INDICES
SINGING LIKE CANARY'S - TO THE GLOBAL CARTEL OF CENTRAL BANKERS...

..."Catch Us Now - We're Falling"
(From historic and unprecedented all-time highs)

The NDX:
After treading briefly below last weeks support-line, the NDX managed to close spot-on this critical trendline boundary.

Barely hanging on to what little remains as a zone of comfort - a narrow weekly close inside the boundary of its longer-term bullish-uptrend channel - the NDX has its work cutout in the days and weeks ahead.

Despite cries of financial Armageddon...

This Super-Cycle Bull may have been stirred - but it has yet to be shaken
One should remain open-minded in reluctantly maintaining necessary levels of collective psychotic-optimism, hinged of course, upon the promise and hope of a sustainable success to the Fed-led rescue efforts now underway.

However, in the event such omnipotent forces of world influence flat-out fail, one should also continue to brace prudently for the worst.

At the pilot's continued request, please keep your safety belts securely fastened, and your seat backs in their standard upright positions.

A FINANCIAL PANIC AND CRISIS-SITUATION ON PAR WITH 911?

They have got to be kidding us, right?

In our view, the current crisis has spawned from titan institutions adopting a perpetual debt-based prosperity paradigm. Such a cumulative, inevitable, systemic-born crisis resulting from such doctrine, will ultimately require a complete dismantling, and total reconstruction from the ground up.

The recent malaise is a result of yet another cumulative miss-step, layered atop decades of such hubris, in ruling authorities attempt to perpetuate, shape, subvert, and distort the otherwise natural order of free-markets.

Authoritarian Free Enterprise aside
The Elliott Waves continue to reveal their footprints with glaring clarity. The immediate $64-trillion-dollar question - is whether this antiquated, and elite system of inevitable misfortune, has finally placed its last straw atop the peoples back.

We shall soon find out whether the markets will be printing fresh historic highs by years-end, or begin unleashing a truly debilitating period of reckoning for many years to come.

Elliott Wave Technology remains at the forefront in producing unrivaled, well-organized, and stunningly accurate guides to long and short-term market forecasts.

For those compelled to participate and profit from such volatile, crisis-bearing opportunities, acquiring access to our adept and impartial council will provide the required competitive advantages in trading safely, and profitably - no matter what the market may deliver.

Such practical guidance will also render lasting utility in effectively balancing one's perceptions, and active engagement with financial markets, across all time-horizons.

The chart below documents last weeks short-term trade-triggers and price-targets captured from Elliott Wave Technology's Near Term Outlook.

For active traders of all time-horizons, there is no better road map for navigating market indices than the Near Term Outlook.

As evidenced by recent news of significant losses at "black-box" quant-funds, no mechanical trading systems or algorithms can anticipate directional moves with the agility, speed, and precision rendered by our adaptive method of short-term forecasting.

Now let's see how the rest of the majors performed last week...

After setting fresh multi-year lows earlier in the week - following news that its manufacturers are taking a leadership role in "rescuing the world" from the effects of their "marked-to-nothing-but-faith" products and mutant offspring - The Dollar has curiously begun to stabilize.

After printing fresh lows for the move on Friday, The Dow managed to close marginally higher on the week, but remains stuck beneath the base of its previous trading range. Although overwhelmingly bullish longer-term, the Dow continues to show signs of vulnerability over the short-run.

Gold failed to follow through on last weeks feeble attempt at breaking above the previous weeks inside bar. As a result, we now have a potentially more powerful array, consisting of "two successive" inside compression bars. Next week should prove interesting.

Since it has been one of the worst recent performers, it is only fitting that The S&P closed the week with a wider margin of cushion above its recently weakened trend channel boundary.

Should readers have interest in obtaining access to Elliott Wave Technology's blog-page, kindly forward the author your e-mail address for private invitation.

Until next time ...

Trade Better / Invest Smarter...

 


 

Joseph Russo

Author: Joseph Russo

Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Joseph Russo

Since the dot.com bubble, 911, and the 2002 market crash, Elliott Wave Technology's mission remains the delivery of valuable solutions-based services that empower clients to execute successful trading and investment decisions in all market environments.

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating their exposure to the financial markets.

Since the official launch of his Elliott Wave Technology website in 2005, he has established an outstanding record of accomplishment, including but not limited to, ...

  • In 2005, he elicited a major long-term wealth producing nugget of guidance in suggesting strongly that members give serious consideration to apportioning 10%-20% of their net worth toward the physical acquisition of Gold (@ $400.) and Silver (@ $6.00).

  • In 2006, the (MTA) Market Technicians Association featured his article "Scaling Perceptions amid the Global Equity Boom" in their industry newsletter, "Technically Speaking."

  • On May 6 of 2007, five months prior to the market top in 2007, though still bullish at that time, he publicly warned long-term investors not to be fooled again, in "Bullish Like There's No Tomorrow."

  • On March 10 of 2008, with another 48% of downside remaining to the bottom of the great bear market of 2008-2009, in "V-for Vendetta," using the Wilshire 5000 as proxy, he publicly laid out the case for the depth and amplitude of the unfolding bear market, which marked terminal to a rather nice long-run in equity values.

  • Working extensively with EasyLanguage® programmer George Pruitt in 2010 and 2011, the author of "Building Winning Trading Systems with TradeStation," he assisted in the development of several proprietary trading systems.

  • On February 11, 2011, he publicly made available his call for a key bottom in the long bond at 117 '3/32. Within a year and half from his call, the long bond rallied in excess of 30% to new all time highs in July of 2012.

  • For the benefit of members and his general readership, he responded to widespread levels of economic and financial uncertainty in the development of Prudent Measures in 2012.

  • He publicly warned of a major top in Apple on October 26, 2012 in the very early stages of a 40% decline from its all time high.

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TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/