2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 422.21

+1.9%

Jan 12 4:00 PM EST

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To: TobagoJack who wrote (170182)	4/5/2021 2:01:04 AM
From: sense	Read Replies (2) of 219281

the fact that we see the Dow rising amid weakness in the NASDAQ and S&P500 is clearly a confirmation that capital is starting to flee... I've noted the same. The way tops are formed is often not recognized by market participants until after the fact. The first shoe to drop is always in the high flyers being defledged... which we saw occurring on some really bad days in the NASDAQ 100... the FANG stocks being partially defanged. Easy to note that as good days in the SQQQ when longs in other things were doing better. From there, you tend to see the worst excess in overvaluation being followed by the second tier coming down off their highs... currently obvious in the Russell 2000 having followed the NASDAQ 100 lower... so good days in the SRTY when longs in other things did better, SRTY outperforming SQQQ. I noted here that rotation from SQQQ out-performance to SRTY out-performance... The S&P 500 has already begun to erode in breadth... but on those days it has tried to follow the leaders to under-perform the market... it has run into sudden and violent reversals as the Fed steps in to buy stocks in an effort to prevent the S&P turning lower. I don't view that participation as a positive for the market... rather than a sign of desperation suggesting the Fed understands that the intervention is "necessary" to try to prevent a crash. So, instead... it has gone on to make new highs... as has the Dow... I don't see any possible pathway from there to the effort succeeding in using "wealth effect" to impact the economy positively... but, it does seem to have avoided the negative impacts a reversal might be expected to impose... only at the cost of preventing a correction that's necessary in a healthy market to enable it in remaining healthy... So, again, take it as a proof the market is not healthy... That leaves the government as the buyer of last resort... taking the place of the usual retail bag-holders only in part... as the intervention intends, clearly encourages and supports, the flow of retail money into the peak.. I noted before I didn't think the stimulus checks would flow into the market in the way they were expected to... and that was correct, too... the money didn't flow as expected... generating the reason the Fed acted as they did... as the LEVERAGED bets of the banks expecting higher prices (due to Fed guarantees of them) would otherwise unravel... They can put it off for a while... but, "you can build a wall on the beach, but you can't hold back the tide"... as quote from Rick Rule in a vid I watched today... And, when the wall on the beach fails... you often get something like Fukushima...

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