Hard to find fault with this market, unless you look underneath her skirts. Bulls, don't dare look under this market's skirts, if you wish to be blithely endowed with optimism.
Every weekend we look at all our charts, primarily as monthly charts. We look for what we call our 'secret weapon'. Sometimes one can actually see the struggle between buyers and sellers in the tension of a trendline. When a stock is supposed to go down, and does not: this is tension, and the sellers are being overwhelmed by the buyers.
It works in both directions: we have charts here that show quite clearly a buyer-seller battle being waged and won.
Each weekend we look for charts showing this short-term turning point. Actually, in the monthly charts these are not necessarily so short-term skirmishes.
It's much easier to demonstrate this in pictures than explain it in worlds. We will show you our two favorite pictures from this weekend, one short, and one long.
Favorite shortsell picture: QIHU. Look in the second pane down at the short-term trend indicator, T.5 Simple, marked in the chart. Essentially what is happening here is a pull-back rally in a bear market picture is failing; buyers are being overwhelmed by sellers. What should be attempting to correct back up -- but sellers are much stronger than buyers.
Favorite long position: HRS, Harris Corp. No sellers here.
We have other pictures of stock we like (or don't like) for the same reason.
We add a US Dollar picture simply because we regard this as the key to our future. We expect the US Dollar to deflate the global debt bubble, and begin the process we should have begun long ago.
For those who like ideas with their pictures:
The Business Cycle has two sides: the SPENDING CYCLE (1911-1929; 1947-1965; 1983-2001...) and the SAVING CYCLE (1929-1947; 1965-1983; 2001-2019...). Negative interest rates are the very clear sign that the central banks want to repress the SAVING CYCLE, they are one eye blind.
What does the SAVING CYCLE do for us? It puts inflation to bed; it destroys the debt cycle, which has ended; as interest rates continue rising, it makes us rich through real money, savings, with a much stronger currency; and it helps everyone gain more security as a SAVING CULTURE; it helps to build a national 'nest egg', which will become the investment fuel of the next Business Cycle (2019-2038).
Our leaders have been doing everything (on a global scale) to pervert this natural cycle. It is if they believe that depriving us of sleep will make us stronger and healthier. Why do they do this? They are protecting those (the "Landlord Class") at the top of the pyramid -- banks get rich off of debt; they want the DEBT CULTURE (the SPENDING CULTURE) to be perpetual. This is the flaw of capitalism. Capitalism (the Culture of Greed) once lit as a fire cannot endure the thought of diminishing returns -- and all of creation is based of the dual process of breathing (expansion, the SPENDING CYCLE, expiration, breathing-out) followed by (contraction, the SAVING CYCLE, inspiration, breathing -in). Interesting words: expiration is breathing-out, which implies its periodical nature, its mortality; inspiration is breathing-in, which word implies divine guidance, regeneration, new vision or reality, and rebirth.
Those who run our world refuse to accept those whole picture of reality. They accept the two sides: but one side (the side they stand on) is intelligence, truth, reality, while the other side is ignorance, superstition, fantasy. Their world is fixed, fastened, dead; and does not flow. In truth, these two sides are always changing, morphing, flowing into one another. There is a place in-between these two sides, a place, an island, where both sides meet and intermarry: call it dawn, or call it dusk. Dawn is where these two sides meet before flowing out into the waking world, the scientific view, reason, masculine dominance, the so-called 'real world' of the senses, the world we can measure with machinery (think of the Renaissance Age in history). Dusk is where these two sides meet before flowing in to the 'eternal world', the dream world, the Darkness, into the world that cannot be measured by machinery. The Inspirational world. Think of the Dusk as the Romantic Age.
Noon, in this picture, is where unbalanced Science and Technology and belief in the senses as being everything rule. Empirical logic. Midnight, in this picture, is where unbalanced Religion and abandonment of technology and belief that the senses are inferior to the power of the synthetic mind (think of the dreaming stage -- the mind as eyes on the world, a tale told in a symbolic language) -- this is a journey back to God, as the Scientific Stage is a journey away from God.
Both Noon and Midnight are illusions (unbalanced, polarized, dangerous, militant, fighting wars against itself, the side of itself it wants to repress); Dawn and Dusk are the sacred islands of truth. Dusk and dawn are mirror-images of each other. But, in Time, nothing lasts: Dawn flows into unbalanced Science and Empire, and Individualism; Dusk flows into unbalanced Religion and Introversion of the Culture and some form of Collectivism (primitive Christianity was such a form). Civilization at Noon. Culture at Midnight. Culture is close to the earth, deep and dark. Civilization is far from the earth, high and bright. Noon is the fruiting of the plant. Midnight is the seeding of the plant, the next round of creation. The SEED and the 'nest egg' are connected. The seed IS a nest-egg, from which the next cycle of world-creation comes.
You cannot have only the seasons you like. The seasons go together, work together, flow into each other. Repressing Winter and preserving Summer does not bring Spring. Negative interest rates are an attempt to repress Winter and preserve Summer. Winter is the season in which all the material structures we have built are stripped and crushed. Our institution disintegrate. Trees get stripped of fruit and leaves, stand naked before God, Space, Eternity. In 2019 we will stand naked before God, again. As we did in 1947 (the re-creation of three new countries: China, Israel and India), as we did in 1983 (near world-war between America, England and Russia; and the subsequent collapse of the Iron Curtain).
Our leaders are blind to how the world works. They see the world as an object or series of objects (the Scientific View), instead of a world of processes and patterns, moving and ever-changing, not fixed. The world is both an object and a wave. During the Day-Cycle (waking reality, THE SPENDING CYCLE) the wave collapses into the object; during the Night-Cycle (dreaming reality, THE SAVING CYCLE) the object collapses back into the wave.