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Playing the Ponzi
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Why “Playing the Ponzi”? I view the entire monetary and financial system as something of a Ponzi scheme. Starting with currency that is created as debt, and running straight through a global economic model that is based on infinite growth in a finite world. This won’t end well. I’d go a step... More
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Playing the Ponzi
  • Warning Bells Are Ringing 0 comments
    May 15, 2014 12:26 PM | about stocks: QQQ, QLD, QID, IWM, RWM, XLF, TLT, TBT, TBF

    Signs are aplenty that the market is flirting with a major breakdown. The next couple of days should be telling. Nasdaq (NASDAQ:QQQ) was rejected at resistance in the form of both trendline and 50 day MA. QQQ has now completed the right shoulder of a pretty textbook Head and Shoulders pattern.

    (click to enlarge)

    Small caps (NYSEARCA:IWM) are threatening to break support. Here is the IWM chart:

    (click to enlarge)

    Perhaps more telling is the action in 30 year Treasuries (NYSEARCA:TLT), where TLT is breaking above resistance.

    (click to enlarge)

    And finally, Financials (NYSEARCA:XLF) may finally be breaking down. Both a rising wedge and a Head and Shoulders top are in place as bearish harbingers for XLF. A test of 200 MA (the dashed blue line) should be a pretty big deal as there is a good bit of support around there.

    (click to enlarge)

    Disclosure: I am long QID, RWM, TLT.

    Additional disclosure: I am short XLF

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