Friday, August 10, 2007

Ponzi-Regimes to the Rescue

Kindly indulge us - as we pen this week’s intro in the spirit and humor of a Dennis Miller-rant.

We cannot help but find it amusing that:
Those institutions whom are complicit in adhering to paradigm-doctrines - passed down and mutated from the founding architects, masterminds, and mass-producers of worthless fiat-paper, (global central banking cartels) suddenly find it essential to “rescue” over-bloated, and still highly-overvalued markets from a crisis of inevitability (on par with 911?) spawned from the very godfather of Ponzi-Schemes from which they steward.

In a rather twisted analogy: (Wrapping up the rant)
The above is akin to continually re-appointing a board of known-pedophiles and sex-offenders to preside over a conglomerate-monopoly of worldwide playgrounds and child-care centers. Having provided them with full-unfettered power in maintaining a hands-on controlling interest, for reasons yet unknown to humankind, we then collectively harbor the brilliance of mind, to rely exclusively upon this board for remedy and solution to the vicious cycles of ongoing child-abuse experienced at their facility. Are we all completely insane?

Making Waves:
From our perspective, the only positive affects of incessant meddling in supposed free-markets – are the unmistakable footprints of “Elliott Waves,” which remain clearly marked in the wake of such malfeasance.

The Week in Review:

General Equity Indices –
Singing to the Global Cartel of Central Bankers…

…“Catch Me Now - I’m Falling”

The NDX:
After treading briefly below last weeks support-line, the NDX managed to close spot-on this critical trendline boundary.

Barley hanging on to what remains a zone of comfort inside the boundaries of a long-term bullish-uptrend channel - the NDX has its work cutout in the days and weeks ahead.

Despite cries of Armageddon:
The Bull has been stirred – but not yet shaken
One should remain opened to maintaining general levels of collective psychotic-optimism in the promise and hope of Fed-led rescue efforts – however, one should also continue to prepare for the worst in the event such omnipotent forces of world influence flat-out fail.

At the pilot’s continued request, please keep your safety belts securely fastened, and your seat backs in their standard upright positions.

A Financial PANIC and Crisis-Situation on par with 911?

They have got to be kidding us, right?

In our view, the current crisis has spawned from institutions misguidedly adopting a perpetual debt-based prosperity paradigm. Such a systemic-born crisis’ will inevitably require dismantling, and renovation from the bottom up.

The recent malaise is nothing more than another layer upon which cumulative miss-steps have been taken over multiple decades in attempt to preserve, subvert, and control the natural order of what used to be free-markets.

Authoritarian Free Enterprise aside
Elliott Waves continue to lay their footprints with glaring clarity. The immediate $64-trillion-dollar question - is whether this antiquated, and elite system of inevitable misfortune, has finally placed its last straw atop the peoples back.

We shall soon find out whether the markets will be printing fresh historic highs by years-end, or begin unleashing a truly debilitating period of reckoning for many years to come.

Elliott Wave Technology remains at the forefront in producing unrivaled, well-organized, and stunningly accurate guides to long and short-term market forecasting.

For those compelled to participate and profit from such volatile crisis-bearing opportunities, acquiring a reliable source of adept and impartial navigation council will provide the all-essential trading-edge required to adapt profitably - no matter what the market may deliver.

In addition, such practical guidance will render long-term utility in how one perceives and engages financial markets in any time-horizon.

The chart below documents last weeks trade-triggers and price-targets captured from Elliott Wave Technology’s Near Term Outlook.

For active traders of all time-horizons, there is no better road map for navigating market indices than the Near Term Outlook.

As evidenced by recent news of significant losses at “black-box” quant-funds, no mechanical trading systems or algorithms can anticipate directional moves with the agility, speed, and precision rendered by our adaptive method of short-term forecasting.

Now let’s see how the rest of the majors performed last week…

After setting fresh multi-year lows earlier in the week - amid news that its manufacturer is taking a leadership role in “rescuing the world” from the affects of its products and offspring - The Dollar has suddenly gathered some strength.

After printing fresh lows for the move on Friday, The Dow managed to close marginally higher on the week, but remains stuck beneath the base of its previous trading range. Although overwhelmingly bullish longer-term, the Dow continues to show signs of vulnerability over the short-run.

Gold failed to follow through on last weeks feeble attempt at breaking above the previous weeks inside bar. As a result, we now have a potentially more powerful array of “two successive” inside compression bars. Next week should prove interesting.

Since it has been one of the worst recent performers, it is only fitting that The S&P closed the week with a wider margin of cushion above its recently muted trend channel boundary.

Until next time …

Trade Better / Invest Smarter…
Joseph Russo
Publisher & Chief Market Analyst
Email Author