A Rising Wedge Completing a Rising Wedge ~ The Risk Averse Alert

Thursday, February 17, 2011

A Rising Wedge Completing a Rising Wedge

The other day I suggested that, the final wave unfolding in formation of a "rising wedge" off late-June 2010 bottom might be, itself, forming a "rising wedge." Here's a view presenting this possibility...


As you see, wave c of 5 appears to be forming a "rising wedge" off late-January 2011 bottom, with its third wave probably unfolding presently. Still rising relative strength and momentum (yet both still diverging) support the view that, wave c of 5 has legs remaining.

So, were a rising wedge completing a rising wedge completing an a-b-c corrective wave off March '09 bottom, then in no more than ten trading days should the plug be pulled on fantasy that, lenders of last resort can forever backstop a bankrupt arrangement whose perpetuation requires increasing sacrifice the likes of which several generations of Americans now are becoming disinclined to swallow quietly.

For now is fairly seen an extraordinary moment finding pitched voices crying out, "Fed dictator Bernanke needs to be toppled." Yet only were every monetarist fraud likewise removed might answer be given to a perplexing quandary feeding popular rage: "Why isn't Wall Street in jail?"

Restoration of shattered confidence awaits.

Fast Money
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