THESE MULTIPLE LOW VOLUME "EPIPHANIES" BRING OUT THE PUNDITS WHO ALWAYS ARE QUICK TO "DECLARE A BOTTOM".... THE LARRY KUDLOW TYPES...IF YOU KNOW WHAT I MEAN...
BUT A REAL BOTTOM SIMPLY WILL NOT COME ON AN ORDINARY 2 BILLION SHARE ...OR LESS... DAY...
SO PLEASE...DON'T INSULT US...WITH THIS BOTTOM BULLSHIT.
WHEN THE NYSE HAS A 10 BILLION SHARE UP DAY...
THEN AND ONLY THEN WILL ANY "BOTTOM" TALK MAKE SENSE...
JUST WATCH VOLUME... THAT WILL BE THE CANARY IN THE MINE SHAFT...
THERE ARE A FEW OTHER "SECRET" SIGNS... THINGS THAT "LOOK FUNNY" AT THE WRONG TIME... I'M STILL WORKING ON THEM...
BUT FOR ONE...GOLD AND STOCKS SHOULD NOT DIVERGE DURING A REAL BOTTOM...
GOLD NEEDS TO PARTICIPATE IN ANY BIG STOCK RALLY... BUT THEN AGAIN...GOLD ACTS LIKE A "CIRCUIT BREAKER" ON THESE RALLIES TOO...!!
IF STOCKS GO UP 1000 DOW POINTS...OIL AND GOLD NEED TO RISE FAST TOO...!!
BUT ANY INCREASE IN OIL...AND/OR GOLD...IMMEDIATELY PUTS THE KYBOSH ON THE STOCK STORY...
SO WE MIGHT HAVE A "SHORT CIRCUIT" IN THE SYSTEM THAT FORCES THE BREAKERS TO "TRIP" ON ANY RALLY ATTEMPT...
REMEMBER DURING THE REAL BUBBLE YEARS...GOLD AND OIL WHERE VERY VERY LOW...EVEN AS THE BUBBLES EXPANDED!! THOSE WERE THE TRUE "MIRACLE YEARS" FOR GREENSPAN ET AL...!!
WATCH GOLD AND OIL, WATCH THE DOLLAR...THE UK POUND AND THE EURO... SUSPICIOUS ACTION HERE COULD PRECEDE THE BIG VOLUME REVERSAL DAY BY A FEW HOURS...OR DAYS...
BUT PERSONALLY...I DON'T THINK ITS GOING TO HAPPEN...
I THINK WE HAVE TOO MANY MACROECONOMIC "CIRCUIT BREAKERS" ....THAT ARE GOING TO SNAP THIS MARKET BACK DOWN ON EVERY RALLY... WE ARE IN A CATCH-22...OF CIRCULAR ECONOMIC REASONING...THAT SIMPLY WILL NOT LET US OUT OF THIS LIQUIDITY TRAP...ANYTIME SOON.
