Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
UK Election Seats Forecasts - Tories 326, Labour 241, SNP 40, Lib Dems 17 - 12th Dec 19
UK General Election 2019 Final Seats Per Party Forecast - 12th Dec 19
What UK CPI, RPI INFLATION Forecasts for General Election Result 2019 - 11th Dec 19
Gold ETF Holdings Surge… But Do They Actually Hold Gold? - 11th Dec 19
Gold, Silver Reversals, Lower Prices and Our Precious Profits - 11th Dec 19
Opinion Pollsters, YouGov MRP General Election 2019 Result Seats Forecast - 11th Dec 19
UK General Election Tory and Labour Marginal Seats Analysis, Implied Forecast 2019 - 11th Dec 19
UK General Election 2019 - Tory Seats Forecast Based on GDP Growth - 11th Dec 19
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19

Market Oracle FREE Newsletter

UK General Election Forecast 2019

Stock Market Index Ramped Higher by Vested Interests Pre Fed Rate Cut

Stock-Markets / Market Manipulation Dec 12, 2007 - 10:59 AM GMT

By: Brian_Bloom

Stock-Markets

The chart below provides evidence that the industrial equity market was “ramped” by vested interests in anticipation of the Fed rate decision.

Note how, following the Fed decision, the Dow Jones fell back below the intersection of the two trendlines – which is roughly where the technical resistance was before it was ramped.


The On Balance Volume chart is still showing a technical reaction back to the rising trendline through which it broke down in early November, and the slow stochastic is in seriously overbought territory.

Technically speaking, this is not a market that is going to rise from here unless it is artificially stimulated. How will that be achieved?

Not shown here are other oscillators which are all pulling back from overbought territory.

I remain convinced that we are facing a very dangerous period ahead. The key will be the OBV. If it falls below the 6 billion share mark on the 12 month daily chart, that will represent a serious “sell” signal.

Frankly, I cannot bring myself to believe that the bad news is all known. Logic dictates that the sub-prime debacle will have a cascading effect, and the markets tried (and failed) to put a good face on all this. Logic dictates that the subprime debacle was not an isolated event. It was symptomatic of a mindset which pervaded the entire financial industry across the planet. The financial engineers were doing mental gymnastics to generate “clever” products where “risk” was for someone else's account. In the real world, that kind of mindset reflects dishonesty, lack of ethics and, at the margin, downright criminal intent to defraud. I expect the bad news to keep coming, and the spin and bullshit artistry to keep escalating.

The harsh re ali ty, in my view, is that the Fed has run out of wriggle room. If any more bad news starts to manifest they have nothing left in their arsenal. If the last rate cut didn't work, and this one didn't work, why should the next one work? In short, I continue to expect a cascading Bear Mark et. Hopefully, it will drift sideways and slowly downwards but I'm not holding my breath

Finally, look at how the gold price reacted. I am still bullish on gold – but I think the speculators have to be taken out first.

By Brian Bloom

www.beyondneanderthal.com

Author's comment : If you would like to see how the whole jigsaw puzzle fits together – such that the pathway forward becomes visible also to you – please register your interest to acquire a copy of my novel at www.beyondneanderthal.com . It is being targeted for publication towards the end of March 2008.

Copyright © 2007 Brian Bloom - All Rights Reserved

Brian Bloom Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules