A Rising Wedge Aimed At a Wounded Animal ~ The Risk Averse Alert

Wednesday, October 27, 2010

A Rising Wedge Aimed At a Wounded Animal

Time is running short for hopelessly insolvent financial institutions to command top dollar raising soon to be needed legal defense funds. Surely a foreclosure moratorium's cessation suggests so much, and nothing more, as financial fraud meeting the light of day only grows.

Should mortgage-backed securities blow out (as seems likely) it is a good bet that, come January 2011 Congress will become a hotbed of mayhem with a Republican majority and a very unpopular team bailout ensconced in the White House. Great theater in crisis ahead, no doubt.


A "rising wedge" appears to be forming in the fifth wave position of wave c. How fitting.

Given an abundance of weak underlying technical measures weakening further still, it is a safe bet that once this "special" Elliott impulse wave is completed exhaustion it encapsulates will culminate in a rather big thud.

Again, an extraordinarily frightful act of some sort — effectively a "head fake" serving some nefarious purpose — cannot be ruled out. After all, team fraud is bleeding and wounded animals are known to behave most dangerously when threatened.

Fast Money
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