What I've marked above is no less significant than what I haven't. What's not noted is the very present moment. Here is the NYSE Composite Index a mere 3.6% lower than its peak of last Thursday and there is barely a shining star among NYSE-listed issues. This is no disparity. Rather it reflects circumstance that goes hand in glove with the failure of hopelessly insolvent lenders of last resort (all things remaining unchanged, of course) to reverse one iota the collapse in confidence their recklessness under the reign of King Ponzi, Alan Greenspan, wrought following the collapse of Adam Smith's Leveraged Ponzi Scheme in 2008. This matter of collapsed confidence simply cannot be easily reversed, and this no matter even if discovery of benevolent life on Mars willing to backstop the mess created by the U.S. Federal Reserve and its captive whores in Congress were in fact a credible possibility—a "proposition," by the way, no less fantastic in its formulation than the heap of crap Ivy League miscreants have been peddling to obscure the truth that, lenders of last resort already long ago have crossed beyond the point of no return.
Tragedy is that, barely a soul gets it. Hard truth has been in our face, front and center, since March '09 bottom. Following a world record print of NYSE-listed issues hitting new 52-week lows as a percentage of all listed issues—something like 83%—during the worst of 2008's market collapse in October, from October 2009 (one year subsequent to the prior year's worst) to the very present moment the market's recovery has been accompanied by a relative paucity of NYSE-listed issues hitting new 52-week highs. Even in the age of QE to infinity and beyond this condition has persisted. Granted, following last year's September commitment by an only the more reckless—hopelessly trapped—Fed to apply QE to its bankrupt system for as far as the eye can see, the number of NYSE-listed issues hitting new 52-week highs broke a long-running contraction that had been ongoing since April 2010. Yet this feat only resulted in a terribly modest increase in NYSE-listed issues hitting new 52-week highs gracing the record since March '09 bottom. All the more telling has been subsequent return to this measure's contracting trend persisting right up to last Thursday's market peak.
There should be no wonder as to why this is occurring. Confidence, rightly, is vanquished. Strong hands have abandoned the asset class, as a persistently contracting volume of shares exchanged daily screams. That's because anyone with a functioning brain cell understands the game is doomed in an environment where both the physical and financial economy have been condemned to an accelerating shutdown, this a direct consequence of the fascist Bernanke's intentional policy to wring out "excess capacity"—a policy intention likewise being prescribed by the Fed chairman's colleagues among imperial euro-creeps.
So, where does this leave equities? Well, to those who understand the Elliott Wave Principle I have been proposing the following view...
Whether wave c of (b) of B [of an a-b-c, Elliott corrective wave down from October 2007 peak] in fact completed last Thursday remains to be seen. Ditto whether wave (c) of B sinks the market in such a chaotic convulsion as to make March '09 bottom appear as though it never brought forth from lenders of last resort a frenzied panic whose effect extends into the foreseeable future support formed as a result.
Yet you don't need to be an advocate of the Elliott Wave Principle to understand the message being delivered by the NYSE new 52-week high-low differential. That message I have consistently made clear here in a single word, one I believe most adequately describes the entire asset class in general:
If by chance you're flush with such holdings right now, say, hanging on for dear life, or worse, believing the intentions of failed Ivy League miscreants dominating institutions of government are honorable, or more to the point, workable, then all I can say at this very late hour is time is short, indeed, for you to come to your senses. This week's geopolitical calamity yet scarcely registering in measures of the asset class we objectively assess here positively is a wake up call. Something VERY BIG is going down. Mark these words.
Everything we have been speculating about here, whether it abundantly be our present day's reality or otherwise thought imminently possible, has come home to roost in a big, big way this week. I mean in a revolutionary manner, and I'm not talking Bolshevik. No pun intended, nor is any implication meant, for we will never know who, truly, is behind it. All we can be sure of is the moment for our generation to exert the fullest of its genuinely patriotic intentions uplifted to the cause of the American Revolution has arrived onto the scene in intrigue only the blind and stupid could see as something more so threatening that most noble accomplishment of our nation's founders. Truth is the subversive enemies of the constitutional republic that is the United States took it on the chin this week, albeit in a manner tragically stealing the lives of innocents who otherwise deserved their nation never, ever be so thoroughly compromised as it has become, as we all do, and so now are most worthy of honor, that for all time their lives never be sorrowfully regarded as having been taken in vain. More illumination on this tomorrow...
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