Stock Market Investors Need to be Aware of Power in Mass Collateral Damage

By: Joseph_Russo

Those seated comfortably in every niche of concentrated power should duly note that their well-guarded monopolies of power and influence are not nearly as invincible as they might perceive them to be.

As evidenced in Egypt, on the turn of a dime, what at one moment appeared status quo turned business-as-usual into a living nightmare.

Like many other global indices, the ETF tracking the Egyptian stock market was moving up quite nicely from its July 2010 lows.  Then suddenly, the people had enough, and revolted against their perceived oppressors, the ruling elites.

As evidenced by the West’s struggle to take sides in concert with the lack of help from Egypt’s military when the going got tough on Wednesday, it is abundantly clear that all ruling classes will quietly resist all philosophies or political economies that will end their monopolies and put them out of business.

It is not difficult to connect the dots associating recent uprisings as collateral damage linked to various global concentrations of power fighting vehemently to preserve their dynasties since the financial sphere’s 2008 outright failure and collapse.

From Central Bankers and their cartel of Primary Dealers to behemoth transnational Corporate Entities and their cartel of Lobbyists, to all of the varied layers of hypocrisy and corruption embedded within global political spheres; all such concentrations of power bear equal responsibility for inciting the type of collateral damage spreading across the East.

Make no mistake, every niche concentration of power across the globe has blood stained hands.  The trouble is, when everyone’s guilty, no one is in a position to either judge or administer punishment for crimes committed. 

Despite the reality of their outright insolvency failure, US banks were deemed by the ruling class as “too big to fail” and no one was held accountable.  This is a pristine example of widespread guilt leading to further exploitation.

Coming soon to a Capital near you…
If all of these power-hungry Einstein’s don’t wake up and smell the coffee, they will no doubt, one-by-one, inevitably come face to face with the real Power in Mass - the power of their people revolting against that which specifically harms and impedes them, and is inherently unjust regardless of language, religion, race, politics, or geographic location.

The chart below shows the Federal Reserve Systems poster-boy stock index as proof of their widely perceived invincibility. 

Following nothing more than a mild hiccup last Friday on the civil unrest in Egypt, the premier transnational US index was back up at fresh highs for its move within 48-hours.  So much for yet another “top” called for by the old Elliott wave guard.

In sharp contrast to Egypt’s exchange, the mega-complacent bullish stampede from the July 2010 low continues thus far in the good-ole US of A.

No matter what unfolds, rest assured that civilization shall continue to thrive. 

Remain prudent, prepare for the worst, expect the best, and recognize that you are indeed the master of your own destiny.

Until next time,

Trade Better/Invest Smarter

By Joseph Russo

Chief Publisher and Technical Analyst
Elliott Wave Technology
Email Author

Copyright © 2011 Elliott Wave Technology. All Rights Reserved.
Joseph Russo, presently the Publisher and Chief Market analyst for Elliott Wave Technology, has been studying Elliott Wave Theory, and the Technical Analysis of Financial Markets since 1991 and currently maintains active member status in the "Market Technicians Association." Joe continues to expand his body of knowledge through the MTA's accredited CMT program.

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