Oscillating Upon the Threshold ~ The Risk Averse Alert

Tuesday, February 15, 2011

Oscillating Upon the Threshold

The masters of monetary shell games today featured their U.S. Treasury Secretary pitching a budget plan whose irrelevance to the collapsing Ponzi scheme bankrupting the trans-Atlantic financial system took no more than 45 seconds for the Secretary to make plain. Next subject...

The game ending potential manifest in a NYSE first becoming a "for profit" business in 2005, now given to risking its ultimate "utility" as an established facilitator of equity capital in the United States is a curious state of affairs at a moment when a good 75% or more of U.S. equity value could be wiped away within the next year or so. Coincidence? I think not.

NYSE McClellan

Examining the McClellan Oscillator during formation of a presumed "rising wedge" off late-June 2010 bottom we see the oscillator's consistent, positive position (albeit persistently diminishing) as each impulse wave of this rising wedge approached its end. Not until the oscillator turned negative did corrective waves take form.

So, here on the verge of the McClellan Oscillator turning negative we have a potentially useful indicator confirming completion of this rising wedge, as well as raising probability that the market's collapse is at hand.

Fast Money
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