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The
Illusionary Dow Bull What
if everything is an illusion and nothing exists? This article is a follow up to the article entitled Dow at 52-Week High? Yeah, Right. The charts below reveal some very interesting details The only chart that looks great is the one priced in American Pesos!! The rest of the charts look pretty sick and truly reveal how illusionary in nature this Bull Market is. The world is to used to looking at everything through Dollar lenses. When you change your glasses for ones that do not only see the whole world in terms of dollars, first you get shocked and then perhaps enlightened. A terrible and tragic fate awaits those who refuse to embrace the new emerging world order. A world order where slowly but surely a standard that firmly controls those lose filthy fingers of the central bankers is imposed. The only standard that could do this would be retuning to some sort of Gold standard or a head standard. A head standard would simply mean that any politician or central banker that attempted to run the printing press like a maniac would be decapitated on the spot. This would truly ensure a complete balanced budget without any deficits what so ever. These fat slugs have only one purpose in mind to take everything that rightfully belongs to you and offer you nothing but worthless paper in exchange for it.
Even the good Old loonie shows that the Dow bull is only a bull when the Dow is priced in US dollars.
Notice that the stronger the Currency the worse the Dow looks. This is the stage that I have been talking about for a while, the currency war stage. Where inflation and deflation hits everything. Assets are inflated in one currency and deflated in another and the world has no idea of what is going on because we have no standard. There is no constant, Gold or central bankers heads is the only way to have a stable but constant standard. Until we get one of those two standards be very careful how you play the equity markets. You could actually think you are wining while you are being milked to death. If you chose to use an advisory service the first question you should ask is do you know how to plug and account for the currency component in the financial equation? If they respond they don’t know what you are talking about, run and do so very fast. This also goes for so called money managers and licensed financial experts. Like 007 they are licensed to kill, but in this case the victim is your portfolio.
My favorite currency the Rand completely rips the illusion to pieces. When viewed here one can see that the only bull around is a load of BS that has an incredible stench.
I have left the best for last. When the Dow is priced in the ultimate currency, you see that it has only broken the secondary down trend line and the primary down trend line is fully intact. Notice since July 2002 the Dow has virtually been locked in a wide trading range and is really doing nothing but attempting to convince another load of suckers to buy it. Conclusion The Dow can probably go much higher and I have already given price targets for the Dow in an earlier essay posted here on November 2003. Article. It is very interesting to note that the first two targets have been hit and surpassed. However this does not change the picture. What is happing is nothing but an illusion. The Dow is simply adjusting to reflect the increase in the number of dollars that the Feds are printing. I have received numerous emails asking me if one can make money with this market. The simple answer is yes one can but only if one plays with extreme caution. Our views here are long-term views, the short-term views are reserved for our subscribers. For the record just to let you know that we are not doomsayers, we have been playing both the Gold Bull and the Equity Bull since early 2003. Back to our longer-term view. Playing the Dow is very, very risky unless you have taken time to study TA, Mass psychology and are a trader that has time on his hands to monitor the situation constantly. The much safer and less stressful alternative is to take positions in Gold, Silver bullion and Gold and Silver stocks whenever they correct significantly and hold them till this trend is over. The up trend has just begun so we have a long way to go before this trend will come to an end. Remember one thing at the end of the day the only thing that really matters is good food, a fine glass of wine and great music (that is what one old wise man stated and I quite agree). So don’t waste time chasing money just for the sake of chasing it. Take time to experience the many beautiful things this world has to offer, most of which are free or cost very little. It is only when the little we have is taken away from us, do we truly appreciate the meaning of the word desperate. So don’t wait to reach that state. Remember riches come only to those who seek it and Rags to those who chase it. Half
the work that is done in this world is to make things appear what they
are not.
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INFORMATION The opinions of FSU contributors do not necessarily reflect those of Financial Sense. |
