Seeking Alpha

Playing the Ponzi's  Instablog

Playing the Ponzi
Send Message
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
My blog:
Playing the Ponzi
  • Was S&P Breakdown A Teaser? 0 comments
    Apr 12, 2012 3:41 PM

    The strong equity rally of the last two days has broken the short term downtrend. The relative weakness of other "risk" assets (like junk bonds, emerging markets, commodities) makes me think that a deeper leg down is on the way, but in the shorter term could we make new highs? If we are following the recipe of the last the two years, which appears to be reasonably likely, given the Central Bank fuel that is in place again this year, a new high could indeed be in the cards.

    In the chart below, I've highlight the initial pullback in red. In each case, the breakdown occurred from a rising (bearish) wedge. In 2010, it occurred in January-February. In 2011, it occurred in early March. This year, it was early April. In each of the past two years, high was made in late April-early May. In each of the last two years, the market has gone on to finish a Head-and Shoulders pattern through the summer. Are we in for a repeat performance?

    (click to enlarge)

Back To Playing the Ponzi's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.