4 replies to this topic

[zedor]

1. Capitalism has been embraced by the world hence we are going up forever and ever. >>> Yes Capitalism has been embraced but that was almost 20 years ago and even China while in name commie in practice its capitalist. That universal embrace of capitalism is what fueled in part the big bull since 1994. But its over now. Capitalism is not known for linear behavior. Rather the history of Capitalism is boom and bust cycles due to inherent human behavioral patterns of greed and fear. What makes capitalism superior in the long run are the cleansing mechanisms of recessions & bear markets - the very cleansing mechanisms that the FED has been trying to delay and eliminate. Like earthquakes that relieve stress bear markets relieve stress. BUT in similar form the longer the lack of a bear market (earthquake) the larger the one to come will be. 2. EWave says we are only in 3 of 3. >>>>> EWavers have been saying that for a good decade now. On a longer term chart no one has a good count. NO ONE. 3. Too many bears so cant have a bear market >>>>> You need bulls to have a bull market and bears to have a bear market. Bear markets are different than crashes and corrections in bull markets. They are their own periods of pecimism about the future. Finally take note that 5 days of drip drip up can be wiped out in a single day on the downside.

[denleo]

Very good point about capitalism!!! "What makes capitalism superior in the long run are the cleansing mechanisms of recessions & bear markets - the very cleansing mechanisms that the FED has been trying to delay and eliminate" That is what I have been saying forever. Delaying or attempting to eliminate it may ruin the foundation of capitalism. Translating into market language -- it is good and healthy to have corrections and bear markets every now and again. The longer we delay them, the weaker we get. Denleo

[OEXCHAOS]

Maybe you should just say, "Moral Hazard"...

[rkd80]

Absolutely, one of the main arguments made by Communists against capitalism was exactly what you just said. Communists wanted to do away with recessions and bear-markets and promised an alternative. Turns out that even the great depression is better than communism. But hindsight is 20/20

[fib_1618]

EWave says we are only in 3 of 3. >>>>> EWavers have been saying that for a good decade now.

No, only one Elliottician has been saying this for a while now - all others have been looking for 3 of 3 down.

On a longer term chart no one has a good count. NO ONE.

How's this one? Follows all the rules outlined by Elliott himself.

Fib