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NITROUS RALLY "Fortune Favors the Informed" *********************************************** There was a time when the company at a party was irrelevant. The only thing that mattered was whether nitrous oxide was to be dispensed. Nitrous oxide became known as laughing gas, and is still used today as an anesthetic agent. Me thinks it has been used along Wall St. Like alcohol, it can induce a euphoric state even in the presence of adverse circumstances, like having your leg cut off ….or brain removed! There must be more than a whiff of nitrous around to sustain the present rally. Let’s see what appears to be really going on. We saw the quiet successful “secret oil rescue’ engineered by the “coalition of the wealthy’ to preserve our status quo. The cost of this was a massive M3 expansion. The price is yet to be paid. The $US has been allowed to take a breather and allow the G7 treasuries to rebalance their books. The oil price rise looks snuffed out( another illusion), so the market rallies, laughing all the way as the world starts to look a better place when it doesn’t cost an arm or leg to fill the fuel tank of the suburban Hummer.
There is another story going though. Note in the chart above:
We can see the historical relationship in this pair of 1999 before the BIS and its coalition of the wealthy took over- more proof supporting our hypothesis regarding the controlling role of the BIS and its coalition of the wealthy.
Now for some more behind the scenes activity. The next chart shows an across the board selling of Treasury Notes. This is the market factoring in a rate rise that is inevitable, unlike Wall St that is on laughing gas, and oblivious to its major surgery. The results of this will be seen very soon. Technically the market is overbought. It can hover in the “overbought” mode for sometime, but the inevitable drop just becomes more dramatic.
Note how the S&P 500 is defying the Treasury Note market. It will wake up from its laughing gas and realize what’s happened. As the sheets are pulled back, all it will see are a pair of bleeding stumps. The surgery was carried out on the oblivious patient while they laughed away. A collapse is inevitable as it attempts to get up and walk!
Acknowledgement © Copyright 2004 John Tyler. This article can be copied and reproduced as long as acknowledgment is given to the author and a link to www.infognome.com is included. Disclaimer: These are personal views and not intended to replace professional advice. We make no claim to be licensed. Contact
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