Counting the Days to the Next Swindle Disguised as a Crisis ~ The Risk Averse Alert

Wednesday, July 28, 2010

Counting the Days to the Next Swindle Disguised as a Crisis

Right on cue, the incompetent Austrian running the state of California into the ground apparently has decided there is no time like the present to yet again show his true colors (having been raised by a devout member of the Nazi party) and test the will of what must be a growing number of Americans coming to a clearer sense of their constitutional power to command their financial destiny with help of bankruptcy laws if need be.

We are talking a state with an already weak credit rating, now hovering just a few notches above "junk" status. Restructuring clearly is just around the corner ... and someone gonna lose. My suspicion is this will include most everyone, making one place where losses have been broadening for over ten years — the stock market — most vulnerable, indeed, to yet another run ... on the bank that is.


So, yesterday was the flip over to an a-b-c-x-a-b-c view of the corrective wave forming since late-May. Today is the flop right back to a simple a-b-c wave count.

Could a rising wedge be forming wave c of (b) ... whose each sub-wave (i.e. waves 1-5) divides into three waves (a-b-c)?

This sure does explain the past week's improved technical strength(!), as was the focus of yesterday's comments. Noted strength, indeed, is rightly associated with Elliott third waves (the current instance being wave 3 of c), as these typically are the most "dynamic" Elliott waves.

Now, let's see if this view holds ... or whether it will need altering. Refinements have been many of late, eh? Still, the big picture remains more or less unchanged ... and not pretty.

Fast Money
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