Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19
Will Labour Government Plant More Tree's than Council's Like Sheffield Fell? - 4th Dec 19
What the UK Economy GDP Growth Rate Predicts for General Election 2019 - 4th Dec 19
Gold, Silver and Stock Market Big Picture: Seat Belts Tightened - 4th Dec 19
Online Presence: What You Need to Know About What Others Know About You - 4th Dec 19
New Company Tip: How To Turn Prospects into Customers with CRM Tech - 4th Dec 19
About To Relive The 2007 US Housing Market Real Estate Crash Again? - 3rd Dec 19
How Far Will Gold Reach Before the Upcoming Reversal? - 3rd Dec 19
Is The Current Stock Market Rally A True Valuation Rally or Euphoria? - 3rd Dec 19
Why Shale Oil Not Viable at $45WTI Anymore, OPEC Can Dictate Price Again - 3rd Dec 19
Lib Dem Election Dodgy Leaflets - Sheffield Hallam Battle General Election 2019 - 3rd Dec 19
Land Rover Discovery Sport Brake Pads Uneven Wear Dash Warning Message at 2mm Mark - 3rd Dec 19
The Rise and Evolution of Bitcoin - 3rd Dec 19
Virtual games and sport, which has one related to the other - 3rd Dec 19
The Narrative About Gold is Changing Again - 2nd Dec 19
Stock Market Liquidity & Volume Diminish – What Next? - 2nd Dec 19
A Complete Guide To Finding The Best CFD Broker - 2nd Dec 19
See You On The Dark Side Of The Moon - 2nd Dec 19
Will Lib Dems Win Sheffield Hallam From Labour? General Election 2019 - 2nd Dec 19
Stock Market Where Are We?  - 1st Dec 19
Will Labour's Insane Manifesto Spending Plans Bankrupt Britain? - 1st Dec 19
Labour vs Tory Manifesto Debt Fuelled Voter Bribes Impact on UK General Election - 30th Nov 19
Growing Inequality Unrest Threatens Mining Industry - 30th Nov 19
Conspiracy Theories Are Killing This Nation - 30th Nov 19
How to Clip a Budgies / Parakeets Wings, Cut / Trim Bird's Flight Feathers - 30th Nov 19
Hidden Failure of SIFI Banks - 29th Nov 19
Use the “Ferrari Pattern” to Predictably Make 431% with IPOs - 29th Nov 19
Tax-Loss Selling Drives Down Gold and Silver Junior Stock Prices - 29th Nov 19
We Are on the Brink of the Second Great Depression - 29th Nov 19
How to Spot REAL Amazon Black Friday Bargains and Avoid FAKE Sales - 29th Nov 19

Market Oracle FREE Newsletter

UK House prices predicting general election result

Debt Crisis Market Chaos Coming Soon To A Theatre Near You

Stock-Markets / Global Debt Crisis May 31, 2010 - 01:52 PM GMT

By: Captain_Hook

Stock-Markets

Best Financial Markets Analysis ArticleMake no mistake about it, what is happening in Greece and Thailand right now will be coming soon to a theatre near you as well, with a war between our bloated bureaucracy and the public at center. It’s important to understand that the weaker periphery states in the Western alliance is just the beginning in a global affair, as Martin Armstrong points out in his latest, and that while being ‘big daddy’ of the sovereign debt debacle will postpone crisis in the US briefly as capital seeks safety in her markets, once this reaction is exhausted the U$$ Titanic America will be going down too. Therein, after the panic into US bonds (and stocks as a result of artificially lower rates) is done, rates will rise in the States as well, forcing the same budget cuts and austerity measures now being imposed on what is being described by the Western media sources (in justifying trading action) as the economic basket case, better known as Europe.


Of course upon closer inspection of just who’s who in terms of economic basket cases in the world as measured by the deficits a country is running, it might surprise some (people who live in a vacuum) that the idiot child Obama has the US right up near the top in this regard, meaning once the panic money runs out for Treasuries, rates will go through the roof overnight here too. This is naturally why we school getting out of debt as soon as possible, as when this trend begins, it will be both relentless and merciless, and in the end reveal the insolvency of America as well. It’s only a matter of time in this regard. And again, it’s coming to a theatre near you soon – to the stock exchanges, banks, and larger economy – so be prepared. Pay off your debts. Don’t keep much money in the banks. Get stock certificates for precious metals shares you intend to keep. And buy as much gold and silver bullion as you can safely store. (i.e. in physical and allocated accounts.)

The following is commentary that originally appeared at Treasure Chests for the benefit of subscribers on Thursday, May 20th, 2010.

With all this it’s difficult believing in Martin Armstrong’s call for new highs in stocks before a more severe collapse comes, however as you would know in reading these pages for sometime, if sentiment conditions remain favorable (bearish), anything is possible in our faulty and fraudulent markets. All we need is for US index open interest put / call ratios to begin trending higher and stocks would begin to rise as they are squeezed by liquidity and buying spurred by our price managing bureaucracy. Remember, it’s there job to deceive the public in furthering their own interests (so they can tax you to death), and they will perform this function in borg like fashion until they ruin the economy long-term. This of course has now occurred, which is why they must work harder at it, but are still failing.

 

The European Union’s recent attempts to revive the euro is perhaps the best example of this we have had in some time, where after bailout measures to stabilize the PIGS failed to stabilize markets, along with yesterday’s short selling ban, it’s now anticipated a currency intervention will be announced prior to the weekend to goose the currency, bonds, and stocks higher in an effort to avoid a complete loss of confidence from developing. And the threat of currency intervention has been working into options expiry this week, as can be seen here, however one does need to wonder how long this will last once bearish euro speculators are squeezed out and / or options expire. And the same holds true for stocks in the States. Again, if the downtrends in US index open interest put / call ratios persist, which are updated here, while a bounce may arise, it’s difficult see stocks getting much traction here all things considered.

Side note: Remember, open interest put / call ratios are more important and can trend counter to those that simply measure volume, as positions are held overnight, making them a far stronger indication of true sentiment. What’s more, not many traders / speculators are either aware and / or appreciate their importance in gauging sentiment today, which is why they still work while most other indicators have become redundant. 

Further to this, because of the present open interest configuration that has good put option related support for the S&P 500 (SPX) at 1100, which can be seen here in the May SPY option series, further price declines might not be possible until next week. It should be remembered however this might be exactly what the doctor ordered in terms of further tracing a potentially developing head and shoulders pattern in the trade, which can be seen below in the attached chart of the Dow. In terms of putting the larger picture together right now, you will remember from our last meeting the Dow / TSX (TSE) Ratio is possibly in the throws of triggering a monthly breakout above the 21-month exponential moving average (EMA), which Dr. Copper (a strong leading indicator) is suggesting will happen with its recent collapse. (See Figure 1)

Figure 1

This is of course suggestive that despite the best laid plans on the part of the bureaucracy, that underneath it all, what’s really happening is the economy is crashing again, led by round two of a real estate credit related collapse. What’s more, as you can see in the attached data it’s happening in real time, which when coupled with the likelihood bearish speculators are now exhausted on an intermediate-term basis, brings the curious mind to the conclusion stocks could be heading lower here, perhaps substantially lower. How much lower is substantially lower? Well, if the larger degree head and shoulders pattern in the Dow pictured below traces out, as you can see the ‘crash zone’ target is between 3,000 and 4,000, which is where one should expect to see the Dow / Gold Ratio (pictured in Figure 1) hitting a ratio of 1. Please note that in both Figures 1 and 2 the time lines are suggesting a turn lower is due right now as well. (See Figure 2)

Figure 2

Unfortunately we cannot carry on past this point, as the remainder of this analysis is reserved for our subscribers. Of course if the above is the kind of analysis you are looking for this is easily remedied by visiting our web site to discover more about how our service can help you in not only this regard, but also in achieving your financial goals. As you will find, our recently reconstructed site includes such improvements as automated subscriptions, improvements to trend identifying / professionally annotated charts, to the more detailed quote pages exclusively designed for independent investors who like to stay on top of things. Here, in addition to improving our advisory service, our aim is to also provide a resource center, one where you have access to well presented 'key' information concerning the markets we cover.

And if you are interested in finding out more about how our advisory service would have kept you on the right side of the equity and precious metals markets these past years, please take some time to review a publicly available and extensive archive located here, where you will find our track record speaks for itself.

Naturally if you have any questions, comments, or criticisms regarding the above, please feel free to drop us a line. We very much enjoy hearing from you on these matters.

Good investing all.

By Captain Hook

http://www.treasurechestsinfo.com/

Treasure Chests is a market timing service specializing in value-based position trading in the precious metals and equity markets with an orientation geared to identifying intermediate-term swing trading opportunities. Specific opportunities are identified utilizing a combination of fundamental, technical, and inter-market analysis. This style of investing has proven very successful for wealthy and sophisticated investors, as it reduces risk and enhances returns when the methodology is applied effectively. Those interested in discovering more about how the strategies described above can enhance your wealth should visit our web site at Treasure Chests

Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, as we are not registered brokers or advisors. Certain statements included herein may constitute "forward-looking statements" with the meaning of certain securities legislative measures. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the above mentioned companies, and / or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Do your own due diligence.

Copyright © 2010 treasurechests.info Inc. All rights reserved.

Unless otherwise indicated, all materials on these pages are copyrighted by treasurechests.info Inc. No part of these pages, either text or image may be used for any purpose other than personal use. Therefore, reproduction, modification, storage in a retrieval system or retransmission, in any form or by any means, electronic, mechanical or otherwise, for reasons other than personal use, is strictly prohibited without prior written permission.

Captain Hook Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules