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To: Zincman who wrote (5283)1/14/2010 5:27:39 AM
From: westpacific  Respond to of 26251
 
Double Post



To: Zincman who wrote (5283)1/14/2010 5:29:01 AM
From: westpacific  Read Replies (1) | Respond to of 26251
 
What is really weird...Hong Kong (China) and INDU (America) on the monthly chart.

If you go back to 1994 China began to form a massive Broadening Top; picture that. America started the pattern in 1997.

Well Hong Kong has completed the pattern of Three Highs into a 3D with just the final low or E to complete. Broadening Tops require three tops of the pattern to complete. Or a 1/2/3 with an A/B/C/D/E pattern. 1 High; A Low; 2B High; C Low; 3D High, E Low
-that low would be 5500 on the index

Then I go to the INDU; same pattern; same start date, it has only completed the 2B high.
-that high for the 3D would be around 14000 to 15000, but then should result in another massive collapse.

So I ask;
-Can China collapse like Chanos thinks it will and with that America rally?

-Capital Flows is name of game; could capital flood into US markets and flee Chinas?

-Could it be driven by upheaval or even war?

-Would it be driven by healthy deflation in China and unhealthy monetary inflation in America?

-Would it be driven by a real estate collapse?

I believe it will; I believe we should see some sort of correction in America since China has topped out and we should follow at first. Then America due to monetary policy could reverse and hyperinflate.

This means after the coming correction remain short China and long America. Nuts is it not?

Whacko times and nutso markets.

Of note if true for America; five wave pattern up; one about complete; f50 to f61.8 retrace to the two 8100 to 8600; rally up to the 12000, correction or f38 four; to final five high of 14 to 15K...the model is out there.

West