Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Here’s Why The Left’s New Economic Policies Are Just Stupid - 19th Feb 19
Should We Declare Emergency for Gold? - 19th Feb 19
Why Stock Traders Must Stay Optimistically Cautious Going Forward - 19th Feb 19
The Corporate Debt Bubble Is Strikingly Similar to the Subprime Mortgage Bubble - 18th Feb 19
Stacking The Next QE On Top Of A $4 Trillion Fed Floor - 18th Feb 19
Get ready for the Stock Market Breakout Pattern Setup II - 18th Feb 19
It's Blue Skies For The Stock Market As Far As The Eye Can See - 18th Feb 19
Stock Market Correction is Due - 18th Feb 19
Iran's Death Spiral -- 40 Years And Counting - 17 Feb 19
Venezuela's Opposition Is Playing With Fire - 17 Feb 19
Fed Chairman Deceives; Precious Metals Mine Supply Threatened - 17 Feb 19
After 8 Terrific Weeks for Stocks, What’s Next? - 16th Feb 19
My Favorite Real Estate Strategies: Rent to Live, Buy to Rent - 16th Feb 19
Schumer & Sanders Want One Thing: Your Money - 16th Feb 19
What Could Happen When the Stock Markets Correct Next - 16th Feb 19
Bitcoin Your Best Opportunity Outside of Stocks - 16th Feb 19
Olympus TG-5 Tough Camera Under SEA Water Test - 16th Feb 19
"Mi Amigo" Sheffield Bomber Crash Memorial Site Fly-past on 22nd February 2019 VR360 - 16th Feb 19
Plunging Inventories have Zinc Bulls Ready to Run - 15th Feb 19
Gold Stocks Mega Mergers Are Bad for Shareholders - 15th Feb 19
Retail Sales Crash! It’s 2008 All Over Again for Stock Market and Economy! - 15th Feb 19
Is Gold Market 2019 Like 2016? - 15th Feb 19
Virgin Media's Increasingly Unreliable Broadband Service - 15th Feb 19
2019 Starting to Shine But is it a Long Con for Stock Investors? - 15th Feb 19
Gold is on the Verge of a Bull-run and Here's Why - 15th Feb 19
Will Stock Market 2019 be like 1999? - 14th Feb 19
3 Charts That Scream “Don’t Buy Stocks” - 14th Feb 19
Capitalism Isn’t Bad, It’s Just Broken - 14th Feb 19
How To Find High-Yield Dividend Stocks That Are Safe - 14th Feb 19
Strategy Session - How This Stocks Bear Market Fits in With Markets of the Past - 14th Feb 19
Marijuana Stocks Ready for Another Massive Rally? - 14th Feb 19
Wage Day Advance And Why There is No Shame About It - 14th Feb 19
Will 2019 be the Year of the Big Breakout for Gold? - 13th Feb 19
Earth Overshoot Day Illustrates We are the Lemmings - 13th Feb 19
A Stock Market Rally With No Pullbacks. What’s Next for Stocks - 13th Feb 19
Where Is Gold’s Rally in Response to USD Weakness? - 13th Feb 19

Market Oracle FREE Newsletter

The Real Secret for Successful Trading

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

© 2005-2019 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