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5 "Tells" that the Stock Markets Are About to Reverse

FTSE Stock Market 175 Point Mini Crash on Dubai Debt Default Fear

Stock-Markets / Financial Crash Nov 26, 2009 - 09:45 AM GMT

By: Nadeem_Walayat

Stock-Markets

Best Financial Markets Analysis ArticleWith the U.S. markets closed for Thanksgiving, the London FTSE 100 Index fell out of bed during the day, met by two relentless waves of selling, apparently on news of the possible debt default of the Dubai government run companies, namely Dubai World freezing debt repayments which sent shock waves around the world. The news was not helped by the London Stock Exchange shutting down during the morning due to technical glitches.


My stock market analysis which is primarily focused on the Dow Jones Index confirmed during the weekend that the Rally Target had been fulfilled on achieving 10,425 or a 713 point gain in just three weeks, and that the Dow was now targeting a normal correction towards 9,900. Whilst the U.S. Markets are closed today, however the markets that I am trading in London are showing that the Dow is now trading 200 points lower at 10,260 (3.35pm GMT) which is set against last nights close of 10,464.

The news out of Dubai is hitting the financial markets hard because of the exposure to these Dubai companies across the western banks estimated to run towards $60 billion, in Britain its the same old culprits with greatest exposure such as RBS. This is also on a day when the bankster's representatives are squirming to prevent the implementation of government proposals for bankster's pay data to be published on how many of their staff are receiving payments of more than £1 million per year.

There is clearly no sense of shame amongst the bankster's that have systematically proceeded to bring Britain and other western economies to their knee's whilst in countries such as Russia the bankster's would have been locked away in Gulags, in Britain there are NO CONSQUENCES FOR THE CRIME OF THE CENTURY!

The Dubai Debt Freeze is triggering the next phase of the global toxic debt crisis as Bankrupt banks will require even more state capital injections in the face of defaulting bubble economies such as Dubai. The inevitable trend of increasingly indebted economies as a consequence of bankrupt bank liabilities trending towards hyperinflation as governments seek to fill the output gap by ever escalating deficit spending triggering ever larger money printing to monetize the debt which my recent article discussed - Deflationists Are WRONG, Prepare for the INFLATION Mega-Trend

Government Debt Defaults are not question of IF but rather WHEN!

The consequences of out of control government borrowing on this scale is highly inflationary which my New series on the INFLATIONARY outlook covers in depth, ensure your subscribed to my always free newsletter to get the full scenario and it's implications in your in box as it will be one of my seminal pieces much as The Stocks Stealth Bull Market Scenario of March 09 and Crude Oil Top of July 08, or the UK Housing Market August 07 Top and Bear Market were before it amongst many others.

By Nadeem Walayat
http://www.marketoracle.co.uk

Copyright © 2005-09 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on the housing market and interest rates. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 400 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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