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“When you stretch the truth, watch out for the snapback.”
~Bill Copeland
No one ever mentions the 100’s of billions of dollars in fines and
penalties doled out to the biggest banks all over America and Europe, on an
almost daily basis and yet without even one single indictment and of course
no prosecutions. WHAT GIVES? However, even if there were indictments
and heavy fines levied against the criminal banks it would be us, the private
American taxpayer, who would end up paying the fines as the government would
just be giving them counterfeit money to keep all the criminals alive and
well (keeping their mouths shut) and continuing to do the bidding of the
crooks in Congress. But of course if there were any criminal charges brought,
they would all be singing like canaries in an effort to save their own
individual hides and stay out of jail.
Last week brought news that five "too-big-to-fail" banks
were expected to plead guilty to antitrust felony charges but once again no
personal charges were laid. What gives?
JANET YELLEN
Fed Chair Janet Yellen admitted: “Of course, the outlook for the
economy, as always, is highly uncertain. I am describing the outlook that I
see as most likely, but based on many years of making economic projections, I
can assure you that any specific projection I write down will
turn out to be wrong, perhaps markedly so. For many reasons,
output and job growth over the next few years could prove to be stronger, and
inflation higher, than I expect; correspondingly, employment could grow more
slowly, and inflation could remain undesirably low.” How is that for
something to hang your hat on? Did we ever see these types of projections
before made by a FED chairman?
Instead of a market selloff, stocks ended mixed and flat again on
Thursday, May 21st. I continue to watch for a top here in the face of ever
increasing serious market manipulation. Naturally, all the big guys keep
rolling in the dough and since there are no charges against any individuals,
there are also only tight lips. Although nobody wants to see a great party
come to an end, THE LAWS OF NATURE tell us that even the best parties must
all eventually come to an end!
On a purely technical basis, the market patterns I have been watching can
be counted as having been completed on Thursday May 21st so it’s
more than likely that the stock market top is just about in. Thursday's
internals were very weak. However, given the level of manipulation of world
markets that is going on, it is still possible that the conglomeration of
government approved thieves will generate some variant pattern that will
emerge so that stocks can continue to climb further, regardless of what the
phony statistics coming out of Washington and Dragi say. However, there
is a major “Bradley Model” turn date in early June which could then become a
candidate target for the top all of which would allow for another 200 point
rally in the Industrials before that long awaited top arrives. Should the
government’s cabal of manipulators want (or need) to extend a bit further,
even though the charts argue that the top is imminent, new sell signals in
the key trend-finder indicators will confirm when an important top finally
has arrived. Stocks remain way overbought. Stay tuned; sell into sharp
rallies and build your cash in preparation of the coming major bear market.
Trying to pick exact tops and bottoms is a fool’s game especially in a
manipulated market. So be careful.
There was also a small change in the McClellan Oscillator again Thursday,
suggesting a large price move is likely coming over the next few days.
The Industrials and S&P 500 are finishing a Rising Bearish Wedge from
October 2014, and in the most bullish case are about 90 percent of the way
through the final wave {e} up for this five wave pattern, which may even have
been fully complete on Thursday afternoon. What is interesting about the
Rising Bearish Wedge from October 2014 is that it provides us with an initial
downside price target objective decline to 16,000 - the first leg of what
would become a massive drop in stock prices, which I believe will include a
stock market crash later this year. A decisive decline below 17,750 would
suggest that the Rising Bearish Wedge is finished and that a powerful decline
has started.
GOLD
Gold fell mildly on Thursday, May 21st, while still inside wave {3} up.
Gold and mining stocks were oversold on Thursday. It looks as if wave {iv}
down of a five wave up move for Wave {3} up has been completed, and the next
wave is {v} up. In precious metals, often times wave fives will be the most
dramatic of the “V” (5th) wave.
Gold looks to have finished a Declining Wedge since May 2013. These
patterns are termination bottom patterns, and it means Gold is headed much
higher during the last 8 months of 2015, headed toward a minimum of 1,425 by
year end. It means that Gold could see a 15 to 20 percent additional rise
later this year or early next year. This means large degree Wave (3) up has
probably started.
MINING STOCKS
The short-term trend indicators for the HUI Mining stocks, which follow
the trends for Gold and Silver, moved to a new sideways signal Tuesday, May
19th and remained there on Thursday.
As for the Short Term; REGULAR COMMON STOCK:
DJIA PPI (Manipulator Index) is still on a Buy
DJIA 14 Day Stochastics on common stock is still on a Buy
Secondary Trend Indicator still, on a Buy
Demand Power Up 1 to 381, Supply Pressure Fell 3 to 374, Neutral
Plunge Protection Team Indicator negative - 5.09, on a Sell
DJIA 10 Day Advance/Decline Line Indicator + 336.4 on a Buy
NYSE New Highs 86 New Lows 24 they are all weak signals, just strong
enough to produce that final blow-off high and Bull Market trap.
Technology NDX Market
On Thursday, May 21st, Demand Power rose 1 to 410, while Supply Pressure
fell 4 to 405, telling us Thursday's rise was weak and due more to a lack of
selling interest than an urge to buy.
NDX 30 Day Stochastic Fast 50.00 Slow 55.40 on a Sell
IN SUMMATION
The stock market is on the cusp of a major selloff, while Gold and
their mining shares are getting ready for a major upside breakout!
But don’t be in a hurry to jump the gun. There will be plenty of
opportunities and room to get on board once the breakdown (breakup in Gold)
starts. (All this thanks to Robert McHugh.)
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