Here is the longer term bearish 4PT we've been talking about lately:




Both breaking it to the upside and respecting it should result in a strong and sustained move in the given direction

And heating oil, it just took out that 26-month+ high, now leading crude and unleaded. Just as we head into the winter season in the NE. How are those people going to afford to heat their homes??? Good job, Bern-qwacke. And as Plosser said today, it there are any more signs of deflation, more QE would be on the table. Of course it would be...

And there's that pop up and next intraday leg in the ES, as expected. 3 points now from the high for the entire 'bulls#%&' market. And yes, I'm long side bias, holding my nose, puking occasionally, but going with the flow, whether I morally like it or not.

Very curious how this is backing off a little as it nears the high, instead of just exploding over. Given that the Midcaps, for example, are just screaming off at news highs without looking back, the moderation in the ES is rather interesting.

My point? Caution is warranted here.

Nicor (ticker symbol GAS) is going a little wild here. Look at a 1-min chart.

Originally posted by jimkane

... Given that the Midcaps, for example, are just screaming off at news highs without looking back, the moderation in the ES is rather interesting.

That would be rather surprising to see a larger pullback here just 3 points or so from the certain stop run. The green ML is calling but will it be able to really make the difference here?

Watch crude at this TL.

It sure is set up to drop to that level, though, jarek. It would be a shock, but it may do it. Probably it just drops to this 18.25 area then jumps up, but let's see.

Notice crude jumped right off that TL, but is now stalling shy of another new high. This is a critical area, for sure.

18.25 sure did send it up, but will it sustain? Or roll into a CD leg or 'W3'? We should know soon.

I think the odds favor the move up here.

Last thought to better explain the above. Here's what the conventional thinking is. Crude and the comms start to rise. Pump gas rises and all this puts a big crimp in the economy, and the prices drop due to the dropping demand of a weakening economy. Crude can never get to $200 (or $1,000) because demand will drop tremendously way before then. Now, here's what the conventional thinkers are missing.

Money printing causes a repricing of comms higher, and the excess cash flows into hard assets, giving the double whammy to the rise. Once this trickles down (and pump gas and grocery shelf food prices are the two biggest ways I feel this kills the average American), the economy will slow rapidly. The FED will respond with more money printing, which not only steals whatever tiny little bit is left of your cash savings, it will reprice the comms higher, and feed excess cash into hard assets, with even more vigor, as the debasement is obvious. Demand drops, and prices rocket higher.

This is the acceleration phase of hyperinflation. Wages don't keep up, savings are destroyed, the economy gets a lot worse, and the FED prints more money. The loop is complete, and it feeds on itself. This is what has begun, in my opinion, and nothing in heaven or on earth can stop it. It reminds me of an old TV commercial, which showed a guy on a merry-go-round type thing, and he was saying 'I have to work longer, to make more money, to buy more cocaine, so I can work longer, to make more money, so I can...' faster and faster, until he eventually explodes I would guess.

That's our system right now, and they've gone too far to stop it, change it, or ever admit they were wrong. They are going to blow us all up, and we are all going to stand by and watch. Mark my words. And although this is just one man's opinion and nothing more, you know my track record on reading things...

Have a great weekend.