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Quantum Fractal Dinosaur Stock Market Pattern - 2/11/21

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Need I say more? 

You know what it means. 

Here's the expanded 2 hour bar chart. Allow yourself to see the big picture. 

tvc_9d6e049699ac03453552284fab4ad48b.png
Click to engorge.

 

Zooming in to one hour bars, the uptrend is slowing, but it is still an uptrend. 

tvc_294de7c24ab6e51cbb4e3204b4cfc6b8.png

 

I have no projections yet on the 2-3 day or 5 day cycles, but the target of this current rally would appear to be 3930, i.e. a test of the high. 

tvc_c44023effe328aa852202ebf16d59f99.png

Back in 2008-2009, I chronicled how the Primary Dealers caused the stock market crash. They were the most important and least recognized cause of what the media has labeled the Great Financial Crisis.

The dealers were overleveraged and positioned wrong then. They are overleveraged and positioned wrong today.

It’s not that they choose to be wrong. While greed, stupidity, and even criminality are definitely involved, they’re actually forced to be wrong by virtue of their role as market makers and Primary Dealers. When their biggest clients, in particular the US Government, are all on one side of the trade, the dealers must, by definition, take the other side.

Unfortunately, they get increasingly reckless when they do. Even more unfortunately, they almost never face consequences when they do. It’s called moral hazard. And the Fed is happy to enable and promote it.

Of course, there’s an important difference between 2008 and now. In 2008, when that crisis was at its peak, we did not already have the massive flow of money that the Fed steadily pumps into dealer accounts. The Bernanke put, which became the permanent Fed put, did not exist yet. The Fed didn’t start QE until November 2008, well after the crash was in full swing. It did not start direct Primary Dealer QE until March 2009.

Today, QE is a given.

Today we have constant, permanent QE. The Fed now has no choice. Its constant bailouts have engendered ever larger bubbles, and ever greater reckless behavior.

Because of that the system has collapsed. It looks the same as the old system on the surface. But it’s not. The dealers are no longer independent business entities. They are now fronts for the Fed. They are merely conduits for getting the new money into the markets and the banking system.

Despite that, now,  the dealers are again on the verge of precipitating another crash.

Subscribers, click here to download the report.`

KNOW WHAT’S HAPPENING NOW, before the Street does, read Lee Adler’s Liquidity Trader risk free for 90 days!

Act on real-time reality!

 

There’s so much confusion out there about how money gets from the Fed into the stock and bond markets. I see the comments in my Twitter feed. People are clueless. Like how M1 is causal. Or how the Fed pumps money into the banking system and that doubles back somehow to speculative bubbles.

The amount of ignorance out there is annoying. Other than you and your fellow subscribers, I just can’t get anyone to pay attention to the facts.

So, let’s talk about the confusion around QE cause and effect, with financial bubbles and money supply. And let’s get to the point. The proof of how QE actually enters the banking system AFTER it gets pumped into the markets, not before.

The point is that the Fed is deliberately pumping up the markets first, as a lever to accomplish whatever it is that it wants to accomplish. Which I surmise is to keep their clients from going bust. Which they should have, many times over.

Subscribers, click here to download the report.`

KNOW WHAT’S HAPPENING NOW, before the Street does, read Lee Adler’s Liquidity Trader risk free for 90 days!

Act on real-time reality!

 

Mike Tyson famously said, “Everyone has a plan until they get punched in the mouth.” OK, so the market didn’t quite punch us in the mouth last week, but it did lull me to sleep last weekend. No worries. This week, there were so many charts with buy signals, I’m going all YOLO.

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These reports are for informational purposes, aimed at a broad audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance. 

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50 minutes ago, DrStool said:

Sorry, but I gotta ask. Is the market open? 

Is that a ___________ Question?

a) rhetorical

b) Zen-Like

c) Pull-My-Finger

d) Confucius

e) magniloquence

f) orwellian

g) sine qua non

h) bored to tears

Z) All of the above

 

>:      i) tchotchkes

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28 minutes ago, MisFit Kid said:

Is that a ___________ Question?

a) rhetorical

b) Zen-Like

c) Pull-My-Finger

d) Confucius

e) magniloquence

f) orwellian

g) sine qua non

h) bored to tears

Z) All of the above

 

>:      i) tchotchkes

Wait--the question was for me? 🤓

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I have no feel for this market today. I honestly don't know what to expect next. Seems like change is a comin, huh? 

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The right shoulder here is higher than the left. I honestly can't recall the last time one of those broke down into a sustained decline. The higher right shoulder has been a signal that the breakdown, if any, would be immediately reversed and lead to higher highs. 

I must say, this feels different. So we'll see. 

tvc_a30a6480e9aee772fbffa25f6f670b97.png

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3 hours ago, PullMyFinger said:

Wait--the question was for me? 🤓

maybe, if nothing else,

that makes one vote for z and one vote for Pull-My-Finger 😄

there are still mail-in ballots to count.......😵

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