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

Yes, jarek, that's the TL I keep referring to (I have it as a set line, but also as a TL that I fit with those swing-highs).

What a battle here at the edge of the KZ.

Overshot by 2 ticks, but the KZ and line area held up and produced the expected reaction. If it can sustain and take out the big area, that would be a big deal. But a 1.272 off this KZ also brings it right to a big flat area, which 'blows out' the TL, and surely could suck in tons of people, setting it up for a fall. But, it may simply fail here again at the same TL price flow. All this as Bern-quacke (maybe I'll start spelling it Bern-qwacke, for better emphasis and so that people understand the jab at him, since when I first starting saying and writing 'Bernquacke' (without the hyphen) I think many people thought I didn't know his name and was mispronouncing/misspelling it...) starts yapping his trap on TV...

Be ready for a roll over...

So far it is resisting any sustained roll. A real battle day, this is. KZ still having influence.

Okay, the TL and 1.272 push finally turned it back down. (I almost posted to watch there, but I am tiring of the blow-by-blow postings...) Probably to an early area, then right back up, then down, then up, then... A real battle day.

Watch 80.75 here as it retests the same price flow... If that gives way, watch out. Blah, blah, blah, same old, same old...

The move off this .886 ABCD, which was a part of a bigger correction is classic in both Jim's and Roofer's terms

Line to line again:

Market rising strongly in here, now up just over 8 points off the recent low. The key thing is it is right back at that key downsloping TL that stopped it many, mnay times before. It looks incredibly strong in here, so I suspect it will burst over shortly, and that very likely will cause a big squirt up on the price, I think. Let's see...

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.