clowns to the left of me…jokers to the right.

This has implications far beyond the financial aspect. Still, Nemo your thoughts?

Terrifying Technicals: This Chartist Predicts An Anti-Fed Revulsion, And A Plunge In The S&P To 450

Let us review the sample examples from the previous charts. Every effort to jam an ideology or a plan down the throat of the world only creates the opposite of the intended effect. I would maintain that this is one of the few lessons from history that can be relied on.

If the Federal Reserve is trying to force feed us prosperity then the inevitable blowback will be adversity. If the Fed is trying to compel the most dramatic economic recovery in history, then the blowback may well be the deepest depression in history. If the Fed is trying to enforce confidence and optimism then the blowback will be fear and despair. If the Fed is trying to force consumers to spend then the blowback will be a collapse in consumer confidence.


clowns to the left of me…jokers to the right. — 3 Comments

  1. Uh…”chartist?”

    The sad thing is, actual results can glorify imbeciles. Who knows who might be “proven right” by events, however suspect their “predictions” may be? Krugman, for example, is counting on it.

    The most wonderful thing about the future dwells at the heart of its mystery. No one knows.

  2. (Okay, I’ll answer.)

    Actually, I’m looking for wild highs — somewhere in the 18,000 – 20,000 Dow range. Please don’t even bother discussing why or why not this should ever be. Hardly the point. What happens after that is really up for grabs. So, for that matter, is everything else, including the period I just said would be positive. See how hard this is?

    The “chartsist’s” assessement of lines on a graph is not very interesting.

  3. What can’t go on, won’t. But I’ve learned the hard way that it can go on quite a bit longer than you think it can before it reaches that point where it can’t.

    I think you’re probably conservative, nemo. Apparently as long as the Fed can keep that pure fiat crank running into the market’s jugular, it will keep right on going up. Now, as an old boom-juice aficinado, I can tell you that eventually you reach a point where the speed doesn’t get you off anymore. Either that or your dealer leaves town and you can’t get any more.

    What happens after that is usually known as a crash. In both the drug and financial worlds. Between which there is probably a bit of overlap.

    Which reminds be: we’re supposed to be scandalized by the goings-on in Wolf of Wall Street, but I’ll bet that Scorsese has seen summer afternoon Hollywood block parties that make the worst of Wolf look like a hard-shell Baptist prayer meeting. I wonder if he’ll ever do a film about that life?

    Re: Markets and charts. I’ve finally come to agree with nemo. Robert Prechter, the biggest bear in history, draws some of the prettiest charts ever seen. And nine times out of ten he is wrong, wrong, wrong. Often enough that when he does rarely get it right, I assume it’s just luck of the draw. He’s predicted twenty five of the last two crashes.