Thursday, January 27, 2011

Wall Street Is The Most Bullish Since The Collapse And Bears Have Capitulated –We Should Fear This Market Because The Idiots Have Embraced It.

Success in financial markets is all about risk.  There are times to be bullish and times to be prudent.  I have shown this volume cycle count algorithm numerous times on here. In fact, we showed it as a sign the market was bottoming in late 2008 and early 2009 when people like Nouriel Roubini were bearish. And it is one of the data points we used to anticipate the 2010 top in equities off of the 2009 low. This is a very powerful algorithm in its predictive abilities.   It isn’t perfect but given how it is constructed, one should heed its actions. 

Every single sustainable rally shows the counts on this algorithm rising along with the market. And every single decline is either coincident or preceded by this algorithm declining.   Today the algorithm is imploding while the market pushes higher on a linear regression line that I believe shows all major market participants are on the same side of the trade.  You know, like the China story, the commodities story, the peak oil story, the housing story, the internet story, the global warming story, the Apple story, the emerging markets story, the diversification story and all of the other lies of Wall Street con men.

I don’t share the basis for my conclusions but I generally share enough to give some indication of why I take the positions I do.  This is one such data point.  And if one is watching global credit markets , one should be worried right now because there is massive volatility just below the surface veneer of stability. 

As I have noted numerous times over the last few months, I remain worried about a rapid decline in markets. Obviously Ben Bernanke and Barack Obama don't appear worried since in the last week both have cited the rising stock market as a positive sign the economy is recovering – a completely ignorant position.  The stock market rising is a sign the economy is not recovering.  In other words, there is no demand for capital in the underlying economy so available credit is being used to manufacture greater and greater profits and leverage in financial markets for Wall Street masters of the universe enabled by a corrupt Washington bureaucracy.  



posted by TimingLogic at 9:19 AM

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