With the Dow set to collapse down a hundred or more, think of this as a sore shoulder at that.
No, this is NOT a discussion of a shampoo, but a lot of the bulls are about to get a little cleaning when the markets open this morning because of how things lined up in the pre-open.
Even if you don’t subscribe to out www.peoplenomics.com newsletter. there is one chart which we discussed this weekend which you might want to take note of because it’s looking like a powerful head and shoulders formation.
The first bump in the Dow on a weekly chart on the left is called (cleverly) the left shoulder. This happened back on May 13th.
The larger bump in the middle is the “head” (July 29) while there’s fair to middling chance that we will fall off the right shoulder as soon as the market opens this morning.
That red line is a moving average trend line and if we were to plug the futures price of the Dow in, it would be below that trend., But more on this for Peoplenomics readers on Wednesday because there is about, I expect, to be all kinds of crap hitting the market in a major way this week.
Want the shopping list?
- Congress, which is acting like partisan idiots (no a new act, mind you) is about to let the US government go into shutdown over the budget. This scares the hell out of global markets and Asia was bleeding red all night and there are serious cuts and contusions in European markets this morning, also, as a result. What comes around goes around I figure.
- The REAL scary word is deflation because that means the global financial system is imploding and anyone with half a nickel’s worth of gray matter will wake up any old time now and ask really pertinent questions. “How come if ya’ll corp-types got all the free money on earth and no barriers to trade, we still are getting the second depression, huh?” Smoke, mirrors, lies, and bullshit never seem to go out of style.
- And the price of oil is dropping toward the $100 level which means my $30-$50 decline in gold could be along this week as well, since while the gold bugs will be right in time, they will be wrong for the next month of three.
While we’d love to stay another day here in Colorado on our trip, we’re rushing to head back to East Texas ahead of the winds of (financial) change.
Headlines like “Political Turmoil Hits Dollar, Euro;Yen, Franc benefit” really make a bear’s day.
And should we line up to see what happens when Chinese growth stops growing?
Oddly Coincident Gun Debate Notes
Oh – and let’s not forget we should see another mass murder/mass shooting in the next week, too, since they are happening on the 147-149 day schedule. October 8 comes up when?
This upcoming one should be especially interesting because IF the economy is really going to melt down and government is in locked due to budget, what’s the most important way to maintain civil order? Answer: No guns – and failing that – No ammo.
Look here: a Puerto Rican House member is pimping a national prepaid cell phone registry, too. (The comments are really worth reading.)
I can hardly wait for the National Pitchfork Registration Act which is sure to come, too. People screwed out of a lifetime of work may not be terribly happy when the economy craters.
This is not financial advice and it may not happen. But just like the Coriolis effect tells us there’s a flush in the works (when things start turning, right) so, too, a just society without huge wealth disparities would likely NOT need to confiscate guns in the manner of Hitler, Stalin, and others. And we don’t need spies spying on spies as a new growth industry, either.
Unless, of course, the paranoid really are right about a number of things…
More after this…
Ugly Shutdown Questions
Yes, the shutdown of the US government seems to be on schedule with neither side about to move. That much we know, but here’s what crossed my mind this morning while thinking about the situation:
Once government shuts down would it be possible, say, to go out and rob a bank? Oh, sure, local and county law enforcement would still be an issue, but the question is “Are there really any G-Men (and women) if there is no money?”
Picture a line of questioning like this:
“Agent Smith, at the time of the arrest were you working?”
“And were you being paid?”
“No…but I have been since paid for that work.”
“But Agent Smith AT THE TIME of the arrest were you presently (at that moment) being paid, or were you just assuming that you were still an agent for the XYZ agency?”
“I had not been terminated by my employer, the US Government, if that’s what you mean?”
“But Agent Smith, how could you be employed if you knew your employer had no money with which to pay you? Isn’t there something missing – like compensation – or were you volunteering and if so, where’s the authority for a volunteer to arrest my client?”
Of course the system will paper all this over, but you see the point, I hope. money means (to me) that they can’t be acting with the force of law since they would be volunteering and I don’t remember the FBI or whoever swearing volunteers to enforce the law.
Maybe I need coffee, after all.
BP Disaster Legal
Another Day, Another Bombing
This time, 54 people have been killed in a bomb blast in Iraq.
Then there were 83 killed in a church bombing in Pakistan this weekend.
I can hardly wait to wake up some morning to a report that there’s no one left to kill in those countries.
Thanks Dick and George…great grand strategy of regime change so far.
Winds of Sink
74 people missing and feared dead off three fishing boats in the wake of that Asian typhoon.
I assume I don’t need to remind you to check weather before going fishing, right?
The Road to Nano Dills
Here’s on of those stories which has me scratching my onboard solar panel and wonder “Why would they do that?”
“Shrinking Particle Accelerators With ‘Accelerator On A Chip’ Technology.” reads the headline.
Excuse me? With all the things in the world that need fixing, I am a total dunce because I don’t see how building up wallet-sized particle accelerators will bring humanity any closer to much of anything.
Could it become a key part of the new transporter technology which is still waiting to be built after all those Star Trek episodes? Maybe.
But until we can end hunger, reduce population uniformly and start figuring out how to make more ethical people to lead the world, I just for the life of me can’t figure out how a pocket linear accelerator would help present matters.
Why, we already have phones that are too small to be useful and the cost of bandwidth certainly isn’t free. So if you’ve got some product which will become manufacturable because of this, today is your lucky day. Me? I’m just sitting here with the WTF/dunce cap on wonder who cooks up this stuff?
Ditto the article about Star Wars-like light sabers being in the works. (Even if you don’t read the article the phrase “…It’s not an in-apt analogy…” is choice. I gotta work that one into a conversation or three just because it sounds so erudite.
Seriously, or nearly so: Next thing you know we’ll have subminiature/nano dill pickles. And again I ask: Why?