Everything is in position for a big down day tomorrow. Most averages barely clinging onto their lower BBs. A certain little indicator has blown through its April low and rarely puts in another bottom in no mans land before venturing into debacle territory. European markets crashing on a day by basis with Greece seeming to put in nonstop 4% daily down moves while already 90% off its high which suggests an exit from the euro is inevitable.
Only thing is that I am worried about a ramp job into the Facebook IPO especially as we are getting close to extreme oversold territory in a certain indicator but maybe the EMFs are causing me to think that. Haven’t checked a certain guru who was so adamant about a bottom as all of his support levels have been penetrated and the cycle high or low days have been exceeded. A secondary top should have been made on Friday and that in conjunction with the weekly reversal signals suggest that any bounce should be muted and short-lived. Plus the August 2011 drop never saw a bounce. Just about 20 consecutive red days.
I’m getting that feeling of a big down day tomorrow, and I think I’m being heavily influenced by EMF waves right now. Meaning… everyone is short now! That’s scary in itself as too many people on one side doesn’t usually work for too long. Maybe… just maybe we do tank hard tomorrow.
Or, maybe I’m just a little too early on my call for a bounce? Now that my “emotions” are telling me “Crash, Crash”, I should be thinking “Squeeze, Squeeze”. Surprises always come when we least expect them.
Few people really think for themselves. They don’t follow through the chain of events and see where it will end. Instead we the people listen to the experts who reassure us in spite of the fact that their position makes absolutely no sense. If we really think about it, no person, business, state or country can keep printing money indefinitely. Even logic (as well as history) would tell us that it would eventually have no value. Nor can we borrow indefinitely. We either pay it back or “stiff” the lender (but we use the technical word “default” – sounds a little better).So here is the thesis. The entire world is living beyond its means, printing too much money which will lead to massive currency inflation, hyperinflation, devaluation, a complete loss of all savings, and the eventual destruction of our currency. We live in a world that is interrelated. Just think about it. The GDP of the U.S. is $15 trillion and the whole world is about $50 trillion. The amount of debt out there is beyond a quadrillion (a thousand trillion dollars). When that debt and the associated derivatives unravel, the global financial system crashes.
These numbers are so big we can’t comprehend them. Do you know how long a million seconds is? Eleven and a half days. How about a billion seconds? 31.7 years. How about a trillion? 31,709 years. And a Quadrillion seconds? Only 31.7 million years. Okay, back to earth. If global GDP is only $50 trillion, how on earth could you ever pay off debt that exceeds a Quadrillion dollars
Not only that, the amount of currency and debt continues to grow so that the debtors will either default or become impoverished (off to debtor prison) or the whole financial system will just collapse and currency will be worth nothing. Zimbabwe here we come! We listen to the assurance of our leaders but we know deep down, whether it’s Obama or Romney, the problems will grow just like they did with George Bush and every administration before. No one has the guts to find real solutions to real problems. Look at the Greeks and French? They voted the belt tightners out! Give me cake! Give me circuses (now replaced by junk food, entertainment and reality TV). I’m not going to put links through the article like I usually do. Consider it commentary and if you want to check it out, it will check out. Believe me!
A Look at Greece
There never was a bailout of “Greece” – just a bailout of the bankers who had purchased “sovereign debt” – another way of saying Greek Bonds. Greece doesn’t have a central bank and can’t print money so they borrow from banks. The banks took a haircut on their principle but received interest payments. The Greeks got nothing other than more austerity – cut budgets, cut programs, increase taxes which only made matters worse – more unemployment, declining GDP, declining tax revenues. They voted out the Prime Minister put in office by the IMF and put in a good socialist. If he can form a government, he will cancel all agreements, default on debt and leave the EEU.
European leaders agree. Greece will be the first to drop out. Greece is now the biggest sovereign debt default ever but it will be dwarfed by Portugal, Spain, Italy and possibly France! Talk about too big to fail! These countries are too big to even think about bailing out!!!
Greece first received $200 billion which was to be followed by another $700 billion in three installments. Yet the bankers have been rewarded in billions of low interest loans they will never be able to repay. Meanwhile, the Greek economy decreased in size by 10 percent. Unemployment is near 20 percent. People are sleeping in the streets. Those who still have houses can’t afford to have the utilities turned on. Only the rich have electricity. You don’t read about this in the news.
A Look at Portugal
Portugal is the next country to go broke. They (the bankers) already received $300 billion. GDP has dropped every quarter for over a year. Unemployment is 15 percent and rising. The housing bubble has collapsed and a fourth of all homes went into default in 2011. Personal bankruptcies are soaring into record territory as government, private and corporate debt exceeds 4 times the country GDP. The government response? Increase taxes making matters worse. The news is more wishful thinking – that a few hundred billion in banker bailouts will solve a few hundred trillion problem! They are just making the problem worse and leaving the people with nothing.
A Look at Spain
Spain is facing Depression Era unemployment – 25 percent for the country as a whole and over 50 percent for adults under 25. In a country of only 38 million people, over 5 million have lost their jobs and are no longer paying taxes and are burdening the “safety net”. Once the IMF imposes its “austerity” program, we will see unemployment go from bad to worse. Housing prices have plummeted by 40 percent and a third are “under water.” The practice of having a several people co-sign for the home loan puts a lot of people on the hook and lets the bank book the old value without ever writing it off. And so they push the same formula onto Spain as they did Greece and Portugal. Bail out the banks, raise taxes, cut services and the Spanish government runs greater deficits. Spain is the ninth largest economy in the world and a bailout will be twice the size of Greece, Portugal and Ireland combined. Who is going to put up the money?
A Look at Italy
The IMF will not allow (according to its rules) a country to have a debt to GDP ratio of greater than 60 percent but Italy’s is twice that at 120%! Once it gets this high, the risk premium goes way up so interest rates rise and the country follows Greece and the others into a debt/death spiral they can never recover from. As interest rates rise, the debt burden increases and the hole grows deeper. When Berlusconi was kicked out as Prime Minister, the EU put a central bank lackey named Mario Monti, he began to raise taxes and cut spending, imposing the Eurozone austerity programs. Italians do not like the medicine and are likely to reject it just like Greece and France.
A Look at Europe
Remember, this doesn’t happen over night. These economies unravel slowly. Now that momentum is increasing in Greece, Portugal is hot on their heels and Spain is crumbling as we speak. Once Spain goes, Italy will be sure to follow. By then, central bankers – mainly Germany will have no stomach for trying to save another country – particularly one that doesn’t want to be saved. Last week France voted out conservative President Nicolas Sarkozy in favor of a left wing socialist. This is a resounding slap in the EU face and its austerity programs. The French haven’t changed much in the past two hundred years. The people are still demanding “cake and circuses”. Here comes more big government, debt and spending. Say a final good bye to the EU.
Last man standing is Germany. Surely, Germany not only can’t bail out all these countries, but does it even want to? Why give away their nation’s considerable wealth to bailout undeserving, undisciplined, ungrateful PIIGS?
A Look at Asia
Japan has been in a slowdown for over 20 years, but still is the third largest economy in the world. Japan is currently in another contraction and export demand is falling. Even South Korea is in a massive slowdown. China is also in a slowdown, a housing bubble burst, and manufacturing is decreasing as world demand drops off the map. Chinese banks are sitting on trillions of dollars of losses they refuse to report or acknowledge. http://www.the-tribulation-network.com/new_tribnet/dene_mcgriff/death_of_the_world_economy.html
We have a reversal here a complete new paradigm.They will not keep this shit market up and all of this is by design.Anything can happen now,watch for a black swan event.
Difficult question to answer Leo. If QQQ holds above 100 SMA today a reversal is possible for bulls. If price closes below 100 SMA today then correction will extend.
Looks like things might crash sooner eh? http://online.wsj.com/article/SB10001424052702303505504577406310678151998.html
Everything is in position for a big down day tomorrow. Most averages barely clinging onto their lower BBs. A certain little indicator has blown through its April low and rarely puts in another bottom in no mans land before venturing into debacle territory. European markets crashing on a day by basis with Greece seeming to put in nonstop 4% daily down moves while already 90% off its high which suggests an exit from the euro is inevitable.
Only thing is that I am worried about a ramp job into the Facebook IPO especially as we are getting close to extreme oversold territory in a certain indicator but maybe the EMFs are causing me to think that. Haven’t checked a certain guru who was so adamant about a bottom as all of his support levels have been penetrated and the cycle high or low days have been exceeded. A secondary top should have been made on Friday and that in conjunction with the weekly reversal signals suggest that any bounce should be muted and short-lived. Plus the August 2011 drop never saw a bounce. Just about 20 consecutive red days.
I’m getting that feeling of a big down day tomorrow, and I think I’m being heavily influenced by EMF waves right now. Meaning… everyone is short now! That’s scary in itself as too many people on one side doesn’t usually work for too long. Maybe… just maybe we do tank hard tomorrow.
Or, maybe I’m just a little too early on my call for a bounce? Now that my “emotions” are telling me “Crash, Crash”, I should be thinking “Squeeze, Squeeze”. Surprises always come when we least expect them.
Few people really think for themselves. They don’t follow through the chain of events and see where it will end. Instead we the people listen to the experts who reassure us in spite of the fact that their position makes absolutely no sense. If we really think about it, no person, business, state or country can keep printing money indefinitely. Even logic (as well as history) would tell us that it would eventually have no value. Nor can we borrow indefinitely. We either pay it back or “stiff” the lender (but we use the technical word “default” – sounds a little better).So here is the thesis. The entire world is living beyond its means, printing too much money which will lead to massive currency inflation, hyperinflation, devaluation, a complete loss of all savings, and the eventual destruction of our currency. We live in a world that is interrelated. Just think about it. The GDP of the U.S. is $15 trillion and the whole world is about $50 trillion. The amount of debt out there is beyond a quadrillion (a thousand trillion dollars). When that debt and the associated derivatives unravel, the global financial system crashes.
These numbers are so big we can’t comprehend them. Do you know how long a million seconds is? Eleven and a half days. How about a billion seconds? 31.7 years. How about a trillion? 31,709 years. And a Quadrillion seconds? Only 31.7 million years. Okay, back to earth. If global GDP is only $50 trillion, how on earth could you ever pay off debt that exceeds a Quadrillion dollars
Not only that, the amount of currency and debt continues to grow so that the debtors will either default or become impoverished (off to debtor prison) or the whole financial system will just collapse and currency will be worth nothing. Zimbabwe here we come! We listen to the assurance of our leaders but we know deep down, whether it’s Obama or Romney, the problems will grow just like they did with George Bush and every administration before. No one has the guts to find real solutions to real problems. Look at the Greeks and French? They voted the belt tightners out! Give me cake! Give me circuses (now replaced by junk food, entertainment and reality TV). I’m not going to put links through the article like I usually do. Consider it commentary and if you want to check it out, it will check out. Believe me!
A Look at Greece
There never was a bailout of “Greece” – just a bailout of the bankers who had purchased “sovereign debt” – another way of saying Greek Bonds. Greece doesn’t have a central bank and can’t print money so they borrow from banks. The banks took a haircut on their principle but received interest payments. The Greeks got nothing other than more austerity – cut budgets, cut programs, increase taxes which only made matters worse – more unemployment, declining GDP, declining tax revenues. They voted out the Prime Minister put in office by the IMF and put in a good socialist. If he can form a government, he will cancel all agreements, default on debt and leave the EEU.
European leaders agree. Greece will be the first to drop out. Greece is now the biggest sovereign debt default ever but it will be dwarfed by Portugal, Spain, Italy and possibly France! Talk about too big to fail! These countries are too big to even think about bailing out!!!
Greece first received $200 billion which was to be followed by another $700 billion in three installments. Yet the bankers have been rewarded in billions of low interest loans they will never be able to repay. Meanwhile, the Greek economy decreased in size by 10 percent. Unemployment is near 20 percent. People are sleeping in the streets. Those who still have houses can’t afford to have the utilities turned on. Only the rich have electricity. You don’t read about this in the news.
A Look at Portugal
Portugal is the next country to go broke. They (the bankers) already received $300 billion. GDP has dropped every quarter for over a year. Unemployment is 15 percent and rising. The housing bubble has collapsed and a fourth of all homes went into default in 2011. Personal bankruptcies are soaring into record territory as government, private and corporate debt exceeds 4 times the country GDP. The government response? Increase taxes making matters worse. The news is more wishful thinking – that a few hundred billion in banker bailouts will solve a few hundred trillion problem! They are just making the problem worse and leaving the people with nothing.
A Look at Spain
Spain is facing Depression Era unemployment – 25 percent for the country as a whole and over 50 percent for adults under 25. In a country of only 38 million people, over 5 million have lost their jobs and are no longer paying taxes and are burdening the “safety net”. Once the IMF imposes its “austerity” program, we will see unemployment go from bad to worse. Housing prices have plummeted by 40 percent and a third are “under water.” The practice of having a several people co-sign for the home loan puts a lot of people on the hook and lets the bank book the old value without ever writing it off. And so they push the same formula onto Spain as they did Greece and Portugal. Bail out the banks, raise taxes, cut services and the Spanish government runs greater deficits. Spain is the ninth largest economy in the world and a bailout will be twice the size of Greece, Portugal and Ireland combined. Who is going to put up the money?
A Look at Italy
The IMF will not allow (according to its rules) a country to have a debt to GDP ratio of greater than 60 percent but Italy’s is twice that at 120%! Once it gets this high, the risk premium goes way up so interest rates rise and the country follows Greece and the others into a debt/death spiral they can never recover from. As interest rates rise, the debt burden increases and the hole grows deeper. When Berlusconi was kicked out as Prime Minister, the EU put a central bank lackey named Mario Monti, he began to raise taxes and cut spending, imposing the Eurozone austerity programs. Italians do not like the medicine and are likely to reject it just like Greece and France.
A Look at Europe
Remember, this doesn’t happen over night. These economies unravel slowly. Now that momentum is increasing in Greece, Portugal is hot on their heels and Spain is crumbling as we speak. Once Spain goes, Italy will be sure to follow. By then, central bankers – mainly Germany will have no stomach for trying to save another country – particularly one that doesn’t want to be saved. Last week France voted out conservative President Nicolas Sarkozy in favor of a left wing socialist. This is a resounding slap in the EU face and its austerity programs. The French haven’t changed much in the past two hundred years. The people are still demanding “cake and circuses”. Here comes more big government, debt and spending. Say a final good bye to the EU.
Last man standing is Germany. Surely, Germany not only can’t bail out all these countries, but does it even want to? Why give away their nation’s considerable wealth to bailout undeserving, undisciplined, ungrateful PIIGS?
A Look at Asia
Japan has been in a slowdown for over 20 years, but still is the third largest economy in the world. Japan is currently in another contraction and export demand is falling. Even South Korea is in a massive slowdown. China is also in a slowdown, a housing bubble burst, and manufacturing is decreasing as world demand drops off the map. Chinese banks are sitting on trillions of dollars of losses they refuse to report or acknowledge.
http://www.the-tribulation-network.com/new_tribnet/dene_mcgriff/death_of_the_world_economy.html
Still, we might get that wave ii up tomorrow.
We have a reversal here a complete new paradigm.They will not keep this shit market up and all of this is by design.Anything can happen now,watch for a black swan event.
Bulls had their chance today and failed. Now the short terms charts are all reset. A big down day could happen tomorrow.
EURUSD Near Monthly trend line:
http://niftychartsandpatterns.blogspot.in/2012/05/eurusd-chart-analysis.html
Difficult question to answer Leo. If QQQ holds above 100 SMA today a reversal is possible for bulls. If price closes below 100 SMA today then correction will extend.
This market will crash hard very soon .I fell it.