Is This Top Real, or Just Another Bernanke Pause?

April 29, 2010

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CGTS: Is This Top Real, or Just Another Bernanke Pause?

Courtesy of Michael Clark, CLARK’S GATE TIMING SYSTEM

INDEX VIEW

We’ve been warning about a possible end to the rally for a few weeks now. It’s hard to predict the direction of the markets when a Big Fist is trying to keep the real weighing machine of the markets from working correctly. Let’s get that audit of the Fed to see how much public money is being sent to prop up stocks.

AORD, Australia: momentum is breaking down. This does NOT tell us how much the prices will decline — but all the indicators in the chart are showing a chart that is currently breaking down.

Banking Index: Has been a very good run. A small turn down, corrected up; now the correction up has broken down.

Drug Index: Broken support. Looks like lower prices coming.

FTSE, Great Britain: what’s keeping this index up? Britain is bankrupt; heading in to social chaos. Why are stocks going up? The future is not looking very bright.

GSPC, S&P 500: Momentum breaking down.

HSI, Hang Seng: Chinese markets breaking (see SSEC, Shanghai below).

IEF: Long TBond Fund ETF. TBonds are rallying. Yield is heading down — Europe is sinking. The only reason TBonds will rise is that they are the only game in town.

N225, Japan. Momentum down. Price holding up pretty well. Why? Japan is insolvent also. The future is pretty bleak, even after 20 years of controlled deflation. You can’t hide your debts for ever. You have to face them, before you are allowed to move on.

OEX: breaking down.

SSEC, Shanghai: two levels of near-term broken support. Is China really removing the punch-bowl?

US Dollar. Tried to correct. But what other currency do you want to own? The Yuan? Really?

Vix up 30% in one day. What is that all about? Greece sunk? Portugal sinking? Fist-fights in Ukrainian parliament? Fighting in the streets of Bangkok? That’s the thing about Night-Cycles: emotion replaces reason. Anything is possible.

XOI, Oil and Gas Index: momentum has broken support.

A draft of the book Turn Out the Lights can be found at the website below. This book is a description of the metaphysical causes of the economic cycles of expansion (Day) and contraction (Night).