1 post tagged “chartist”

Global Positioning System

Anyone who is invested in the American Stock markets must be experiencing some major emotional issues just about now. The long term chart are showing some extremely dangerous possibilities. Today's bear rally was strong enough to move the price below it's mid term support level of 11800 and if this market sentiment continues then the Dow could easily crash like it did in 1929. Look at the left side of the bottom chart. That's the spike of the stock market crash that led to the Great Depression. The middle chart is showing todays support break. Bernanke and the Feds voted for an interest rate cut today. This is in an attempt to cause a soft landing. A soft landing does not mean a stronger market. Just a month or so back the Feds threw billions of dollars into the market to try to stimulate growth. That was also a move towards a soft landing. That was more Fiat money into a system that already has no foundational ground for growth. The USD took a thumble after the release of the interest rate cut has is almost always the case. One has to wonder at this point how much strength the Chinese will put behind the Euro. There is indication on currency charts that a rally to 1.60 EurUsd is possible in the next few months.

These markets are as volatile has markets can be. I can just imagine what the big players are discussing in the boardrooms. The Chinese especially have a great and powerful influence here. They can move markets by several percentage points in one direction and then the other just to move smaller players out of their positions.

The financial markets are definitely not ruled by Philanthropists. Good Luck to you if you are involved. Charts are a powerful thing but they are not perfect. When i look at financial charts i am reminded of the mariners or old and how the best of them could navigate anywhere as long as they had historical star charts or shoreline charts. The greatest and most adventuresome would explore beyond the known borders and some even survived to tell about it.