DrStool Posted May 12, 2022 Report Share Posted May 12, 2022 Crypto is giving us a glimpse of what's ahead for traditional investment classes. And to think that back on January 3 when Tom Bodrovics posted his interview of me (recorded 12/28), they laughed at me for recommending cash as the least terrible investment. Now that I've reposted that, we can rally. But first, if you want the big picture right now, go here. Now for today's likely pattern, first let's start with the daily chart of the ES going back a few years to see the extraordinary beauty of this top, and envision its implications. Again, if you want the big picture technical outlook, "20 of the 23 picks are short sales." Last night, I mentioned the 3 downtrendrending sport lines and speculated on a possible breakaway gap and island top. Well, as of 5 AM, the ES 24 hour S&P fugutures are only trundling down on those tracks. They haven't broken. If they do, the proximate target when NY opens would be around 3880. My only cycle projection so far is on a 2-3 day cycle basis and it only points to 3890-3900. If they get there by then, then the 5 day cycle projection would be around 3850. The Crypto Nite has seen spectacular losses continuing. Many of the lesser craptos saw losses of 25-30% yesterday alone, and the Terror "stable coin" essentially became worthless. People think I'm joking when I post a price objection of negative numbers on some of this crap, including buttcoin, but yeah, that's what the conventional measured move targets are when you measure the depth of the top pattern. I'll say it again also. The Fed did this. It created the greatest moral hazard bubble in history. These virtual money trading games were a natural outgrowth of the wild west mentality that the Fed created, promoted, and rewarded. Bernanke and Powell are financial war criminals who deserve the opprobrium of history. I cut Yellen a break because she had the Fed on a course of balance sheet shrinkage, which Powell puked and shit on when the 10 year got to 3.25. He doesn't have that luxury today, with real inflation running 15%. Meanwhile, we're having a spectacular rally in the 10 year, with the yield targeting either 2.77 or 2.62. This won't end well either. It's panic driven. And there are simply no short term bills to be had as the Treasury engages in a campaign of massive T-bill paydowns with the giant wad of cash it just took in from record tax collections. Finally, while I am personally benefitting from the strength in the dollar particularly vis a vis the euro, I find it disconcerting. I feel uneasy. But it's the natural result of the Fed no longer printing dollars while the ECB continues to print euros. The trend will only accelerate when the Fed begins withdrawing dollars from the market beginning in June with its first installment of QT. Stay tuned for all the exciting action. Catch a Falling Knife May 11, 2022 Buys Beat Shorts in This Week’s Swing Trade Screens May 9, 2022 Big Tops Lead to Big, Bad Bear Markets May 8, 2022 April Tax Collections Still Running Red Hot Mean That Fed Must Get Tighter May 4, 2022 Time to Catch Gold Knives May 3, 2022 The Fed is Tightening Into a Sheet Storm May 2, 2022 If you're serious about the underlying forces of supply and demand that drive the markets, join me! If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter. Link to comment Share on other sites More sharing options...
DrStool Posted May 12, 2022 Author Report Share Posted May 12, 2022 While the market is on the edge, I'm going to Eze today. Ciao! But I'll check in. Link to comment Share on other sites More sharing options...
DrStool Posted May 12, 2022 Author Report Share Posted May 12, 2022 Lunchtime. Link to comment Share on other sites More sharing options...
DrStool Posted May 12, 2022 Author Report Share Posted May 12, 2022 Lunchtime. Link to comment Share on other sites More sharing options...
DrStool Posted May 12, 2022 Author Report Share Posted May 12, 2022 I shit you not. This is what I'm looking at as I eat lunch at L'Chevre d'Or. Link to comment Share on other sites More sharing options...
Jorma Posted May 12, 2022 Report Share Posted May 12, 2022 3 hours ago, DrStool said: I shit you not. This is what I'm looking at as I eat lunch at L'Chevre d'Or. Cliffs. Link to comment Share on other sites More sharing options...
DrStool Posted May 12, 2022 Author Report Share Posted May 12, 2022 What was that Spike all about? Link to comment Share on other sites More sharing options...
DrStool Posted May 12, 2022 Author Report Share Posted May 12, 2022 On the way home. Walked down the Neirsche path. Resolved. Never again! And never ever ever walk up! Unless you're 25 years old. Link to comment Share on other sites More sharing options...
Jimi Posted May 12, 2022 Report Share Posted May 12, 2022 3 hours ago, DrStool said: I shit you not. This is what I'm looking at as I eat lunch at L'Chevre d'Or. That is the restaurant where my mom introduced my wife to the simple pleasure of a Kir Royale as an aperitif. Link to comment Share on other sites More sharing options...
BurntOnce Posted May 12, 2022 Report Share Posted May 12, 2022 gold/silver is ratio is taking off. Link to comment Share on other sites More sharing options...
Jimi Posted May 12, 2022 Report Share Posted May 12, 2022 25 minutes ago, BurntOnce said: gold/silver is ratio is taking off. Unfortunately, only because silver is losing value faster than gold.... Link to comment Share on other sites More sharing options...
DrStool Posted May 12, 2022 Author Report Share Posted May 12, 2022 2-3 day cycle projection says 3850 Link to comment Share on other sites More sharing options...
DrStool Posted May 12, 2022 Author Report Share Posted May 12, 2022 Scary Link to comment Share on other sites More sharing options...
Jorma Posted May 12, 2022 Report Share Posted May 12, 2022 So much for ending the string of lower lows. Bulls had so much hope at noon. Pick any timeframe you want. Link to comment Share on other sites More sharing options...
sandy beach Posted May 12, 2022 Report Share Posted May 12, 2022 1 hour ago, Jimi said: Unfortunately, only because silver is losing value faster than gold.... Metals and mining sector really taking a hit lately. Is this just large players raising cash? Or is there a more fundamental reason? Link to comment Share on other sites More sharing options...
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