This Is Super Ugly…
This Is Super Ugly…And It’s About Time It Showed Up by Rory for The Daily Coin
Our hope and prayer is this carnage completely wipes out all the nonsense that has been packed into the stock market since 2010. We pray that some of the 70% of the stock owners – the top 10-15% of wealth holders in the U.S. – are completely and absolutely gutted like a fish. Let’s not forget what oh Dickie boy said a couple years back about the stock market…
Cue Former Dallas Federal Reserve President Richard Fisher.
As Richard Fisher stated several months ago, the Federal Reserve front loaded a wealth effect that now has to go through a digestive period. As the Federal Reserve has continued to pump up the S&P 500 and Dow Jones Industrial Average stock markets this has created an illusion that covers up the fact the U.S. economy has never recovered from the 2006-2008 financial crisis the banks caused in the first place. To say these stock markets can not sustain this illusion is an understatement. The crash that will occur will make the previous crash look like child’s play. Source
“What The Fed did, and I was part of it, was front-loaded an enormous rally market rally in order to create a wealth effect… and an uncomfortable digestive period is likely now.”…The Fed is a giant weapon that has no ammunition left.”
Is the system beginning to collapse under it’s own weight? Only time will answer that question, but what we are seeing is enormous sell off with none of the paper pusher buying the dip. There is a gap on the chart, way up around the 28,800, that needs to be filled but that could happen anytime – next week or next decade – the timing is not important, what is important is how much wealth is being transferred at the moment. Remember, when someone sells, someone is buying. It’s not going back up at the moment, but the shares are absolutely changing hands. The shares you sell into the market, creating all the red, someone is on the other side buying those shares are not disappearing they are simply moving from your hands to someone else’s hand.
Now for the visuals:
First chart shows an open gap from a couple of weeks ago. Gaps are “filled” or “closed” when the lines move higher or lower (up and down) past the open space left in the flow of the continuous line moving left to right. The up and down line must be continuous as well. When there is an opening the chart wants to correct the situation and make it continuous.
You can see the gap on the right “filled / closed” has continuous lines on both sides of the opening – the gap – the gap on the left is standing there like a child that was left at school by there parents who forgot to pick them up.
My point is, none of this matters. The gap in the upper chart is higher than the gap in the lower chart and will be filled when the other correction is made.
Coronavirus will pass, people will come out of their homes, go back to work and the criminals will have made off with your remaining wealth. The charts will race higher and higher in breathtaking fashion and the little people – that’s all the people who jumped out of their stocks – will be left high and dry. The DJIA will top 30,000 on it’s way to 35,000 and all will be right with the world. The criminal banking cabal will be twice as strong as they are today and will run an even larger portion of the economy. Of course I pray that I’m dead wrong about the banks growing power, but history is a great teacher and recent history supports 100% of what is said.