Current “DOW Jones” highs in stocks index, have NOT been matched by similar highs in the SP500 Index and many other equity indexes. The Dow Jones created by the largest, oldest and most artificial investment equity stock index in the world. The Dow Jones stock indexes were created as a marketing tool to lure investors into seemingly endless bull market concept. The Wall Street endless “Buy Only” shell game has been supported in modern times as a way to pretend that if the Dow up then the economy is not in a recession. Also that issues like unemployment does not effect investors.
All this by a government who’s spending and budget is totally out of control, and facing outright default on it’s debt, is now trying to sucker the public to “BUY IN” to the top of a last stage of “Triple Top” that is following to technical perfection for what will be the opening act of the 2013 to 2017 super cycle decline of historical importance on a global level!
Now, we have been warning the public over and over about the convergence of several long term historical indicators of the US economy, currency, commodities. And that the process can also be a gusher of profits to those who will act over the last several months to engage in a call writing programs on stocks that they want to book profits. While holding on to the physical stocks that they purchased at very low levels over the last several years. Also, the process of final stage of denial for the true state of the US economy during the endless theater of a jobless recovery for a recession that has never ended. This process of the new super cycle decline will also see the US Bond market. Just as it did back in 1987, dragging the stock market down as the price of bonds also fell.
The Triple Top is the largest formation possible. On a historical basis it shows how much effort has been expended from 2000 until 2013 by the Federal Reserve, US Treasury, Congress and White House administrations to create all the conditions needed for “The Great Crash”. This sets the stage for extreme volatility in both stocks, bonds and the currency markets. This also accelerates the currency wars as the Euro, Yen, Dollar struggle to stay solvent. It will be months down the road seen as the fuse for the start of the next stage up in the super cycle of precious metals prices exploding.
It is very difficult for the elite media, the Wall Street investment bankers and brokerage firms to cope with the hard facts and reality of technical history. The media are the paid flunkies that help sell the public that history of extreme highs and lows in the investment world is something that can never be predicted, tracked or documented. This is because the media is only selling gossip and excuses.
But the hard reality is that the great “Triple Top” that started with the 2000 highs is part of a massive distribution pattern of historical importance. This pattern becomes even more important when we look at the equity markets from the longer and larger historical framework of facts. As everyone who actually knows my proprietary technical work, knows that my work has a major foundational grounding in the work of GANN Theory.
All stock, bond and commodities markets are by nature parabolic in nature and they move from being long term over priced to long term over sold. The daily and weekly volatility cycles and nothing more than short term conditions where the market balances itself between buyers and sellers. Editorial chattering is only the media trying to find an excuse of the moment to sell the public in order to keep selling papers or TV commercials.
There are an entire raft of additional technical facts for why the economy is dying and the proof of that is everywhere if your will to look real data.
But the greater reality is that just like the tides that occur every day, month for every year of your life the world of economic tides is always at work. Some companies will come out the other side of any depression stronger and they are the next engines of a new generation of economic growth. We are in a transition of industry and society, that this is why the economic shift that results from this coming super cycle decline will shape our future.
There is an 84 year cycle that was identified by W. D. GANN and it is happening now, and the last stage of the “Triple Top” for stocks is the diving platform that stages the greatest decline of stocks in the last 84 years. I am not going to labor this issue but rather to point out that these super cycle always start where the public investors are sucked into buying the “New Highs.”
Each of the super cycles occurred on in concert with a major international economic fracture. If we look at the current melt down of Europe and Japan just as two examples, it is simple to see that other events will, by the Wall Street and NY media, be used as excuses for America’s “Victimization” and is not at fault... Which is just the opposite of the truth.
All we need to do is look at the three most recent events in American history. It starts in 1845 to 1852, then we move forward to 1929 to 1933, and then next event is start of the great decline with ends the triple top in 2013 and lasts until 2017. The 2000 top which started the triple top process now about to end was the a cycle wave that started from 1940 and ended in the first week of January 2000. The 1987 Crash...only the correction that set up the last great rally to the 2000 high. That rally beginning in 1987 and running 13 year cycle to the 2000 high. The 2007 high was 20 years off the bottom from the cycle low of 1987. This Triple Top’s construction is not perfect but the 84 year cycle is like a comet that also follow patterns of growth and rebirth of society globally.
And if your interested, the 84 year economic cycle that predated the 1845-1852 cycle started in 1761 and lated until 1768!
So once the first real bounce occurs after the end of a super cycle occurs it may take 3 years before a the “First” bottom. Triple Tops create triple bottoms...so the full bottom could take 7 to 13 years.
These super cycles have a long historical factual basis. The dollars demise and the rise to hyper inflation will all be part of this process. Commodity prices will see wild swings in volatility will also be part of this theater. Precious metals will play an even greater role in the upcoming dislocation. Anything investment wise that is tied to debt will be worthless, and tangible or hard assets will be king. This is also why we see several States like Utah already in process to mint gold and silver coins. Electronic payment systems will still need to be based on some theory of currency, what it will be is another issue.
So protect your profits in stock and bonds. My personal concern is the stability of mutual funds. Public pension funds are already under funded, and cities are in default in many nations, not just the USA! So don’t let anyone trick you into owning the top of market.