1 reply to this topic

[Mr Dev]

i ran across something interesting i wanted to share this morning.

of course Central Bankers around the world have admitted to financial engineering to move equity prices during the past 5 years.
heck, if they hadnt admitted it more than once ..im sure a couple of bulls here would continue to accuse me of delusional thinking, that the FEDs try and control equity prices.

well this chart below shows that during this time we've made a move up on the $XVG chart similar to the 1990-1998-99 advance drawn with the red trendline but in half the time.

to expect this to continue goes beyond anything natural, rational or logical in market history .

when you have plenty of time (as there is additional information directly from the Valueline.com website on Geometric vs. Arithmetic Indexes)
you can read more about the chart and analysis from the Canadian Technician, Greg Schnell.. as this is a critical place on the chart based on how important resistance levels have been in the past.

something Greg says that i support ... If the central banks had technical analysts as advisors (and I think they do), they would have been very conscious of a triple top scenario. ( back in 2012 SPX chart )
Interestingly, we usually see central banks add at market lows, not highs as they did in 2012.

enjoy

Edited by Mr Dev, 25 June 2014 - 11:10 AM.

[libertas]

"to expect this to continue goes beyond anything natural, rational or logical in market history ." Yes. But the problem is we have agencies around the world who are, by Einstein's definition, quite insane. They keep doing the same thing in the hope of a different result. It is not just the Fed, it is pretty much all the central banks of the developed world. They have ventured into realms of economic manipulation far beyond their understanding. "Natural, rational or logical" is not a consideration - they are a cargo cult. We have to suffer the consequences, which will be devastating, but in the meantime we are locked in a room with a madman (or woman, as the case may be) with an axe - all we can do is watch him. Having said the above, I would mention Jeremy Grantham's projection of 2200 before the collapse, based on historical bubble behaviors. Just sayin'

Edited by libertas, 25 June 2014 - 01:45 PM.