Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
Gold Price Nearing Bull Market Breakout, Stocks to Follow - 20th Apr 18
What’s Bitcoin Really Worth? - 20th Apr 18
Stock Market May "Let Go" - 20th Apr 18
Overwhelming Evidence Against Near Stock Market Grand Supercycle Top - 20th Apr 18
Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - 20th Apr 18
The Incredible Silver Trade – What You Need to Know - 20th Apr 18
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

World Financial InStability - Stock Market Wealthbuilder Report

Stock-Markets / Financial Markets 2014 Apr 01, 2014 - 06:17 PM GMT

By: Christopher_Quigley

Stock-Markets

I came across the inverted pyramid below last year which outlines the “asset backing configuration” between gold, cash and all other financial instruments.


I decided to try to put some real figures behind this graphic. What I discovered is summarized below.

When you review this summary you begin to understand why many are beginning to believe the current “fiat” (Fiat = let it be) money system is becoming increasingly unstable and cannot continue in its present “arrangement”.

The one statistic that I discovered  which really worries me is the fact that in 18 years total currency in circulation (item 2.) has grown from 1 trillion dollars to the current level of 4 trillion dollars.

This has all the hallmarks of hyper-inflation to me and explains the explosion in food, commodity and equity prices world –wide despite lackluster economic performance.

World Financial Summary:

9.         Total Value of Derivatives (Notional):                1,200 Trillion

8.         Total Debt. (Owned By Banks):                                160 Trillion

7.         Total Value of Assets In The World:                         120 Trillion (Managed).

6.         Total Personal Debt. (Owned By Banks):               100 Trillion

5.         Total Gov. Debt. (Owned By Banks):                       60   Trillion

4.         World GDP:                                                                  70   Trillion

3.         Total Value of Derivatives (Cash):                          20   Trillion     

2.         Total Value of Circulating Currency (Cash):          4     Trillion

1.         Total Value of Gold Reserves:                                   1.5 Trillion

 (US Dollars: Approx. 2013).

Source:World Gold Council

 Technical Bullish Breakout Signals.

On the Dow Industrials, the Dow Transports, the McClennan Oscillator Index, the McClennan Summation Index, the Advance-Decline Line, the market is giving “buy” signals this Tuesday.

I attach charts of the fore-mentioned for your review.

Dow Industrials: Daily

Dow Transports: Daily

 

McClennan Summation Index: Daily

McClennan Oscillator: Daily

 

Advance/Decline Line: Daily

Technically speaking this augurs well for the up-coming earnings season.

Even consumer staples, which have been in a short term bear, gave a gentle bullish break-out signal.

Consumer Staples ETF: XLP: Daily

As you can see from the chart above, for nearly 20 trading days (4 calendar weeks) the Consumer Staples ETF: XLP had been caught in a tight trading range (a line).

I told all my students to closely observe where the “break-out” would occur on this ETF. I pointed out that, on probability, the break-out direction would indicate April’s earning season trend.

Charts Courtesy Worden Bros.

By Christopher M. Quigley

B.Sc., M.M.I.I. Grad., M.A.
http://www.wealthbuilder.ie

Mr. Quigley was born in 1958 in Dublin, Ireland. He holds a Bachelor Degree in Accounting and Management from Trinity College Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the stock market in 1989 in Belmont, California where he lived for 6 years. He has developed the Wealthbuilder investment and trading course over the last two decades as a result of research, study and experience. This system marries fundamental analysis with technical analysis and focuses on momentum, value and pension strategies.

Since 2007 Mr. Quigley has written over 80 articles which have been published on popular web   sites based in California, New York, London and Dublin.

Mr. Quigley is now lives in Dublin, Ireland and Tampa Bay, Florida.

© 2014 Copyright Christopher M. Quigley - All Rights Reserved

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.

Christopher M. Quigley Archive

© 2005-2018 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