The Dow Industrials Average List has grown since early March 2009, upon the introduction at that time of an unorthodox Candlestick Reversal Structure which foretold an enormous increase in rates. The advance initially moved explosively, then haltingly, and has now moved explosively again as Finances and individual people clamor for more and more expense candy while driving costs higher in manic vogue which remembers the excesses of the Tulip Bulb Rage, the South Seas Bubble, and the stock market surroundings of October 1929, of early 2000, and of July 2007.
The principles would be the same, and the results will be the same now too. Manias constantly come to a conclusion; and once they do, prices return to levels which are also lower than these which obtained when the mania began.Actually, what we’re seeing now’s a mania inside a much larger mania, which commenced about 1995. This state of facts naturally bodes ill for future years of share prices.The existing mania in shares has-been accompanied by correlative manias in gold and in silver. Platinum has been driven to some new all time High; magic hasn’t, though it is marking along at a lower energy level. It appears that the interest in gold is launched upon a flight in the Buck, which in turn hasbeen the result of a belief that inflation is on-the-way, that there’s nowhere for the Buck to go – except down, and that safety is usually to be present in the convenience of the last word Cash, which is gold.
Signs of an expiring mania in gold encompass us: India trades vast amounts of U.S. Dollars for gold, at what we view to be exactly the wrong moment; Harrods today offers real gold in a variety of types, “offtheshelf;” an agency of the United Nations is considering the design of a new worldwide reserve currency as opposed to the Buck, to be predicated on a “basket” of different currencies which would-be “managed” by the agency (which itself is a warning sign); possibly renowned names market the death of the Money and the glories of gold; and – last but not least – public belief as well as the viewpoint of “professionals” is overwhelmingly supportive of platinum while disheartening the Dollar.All of the are opposite indications. They’re starting to be borne out now by Candlestick Designs in a number of time-frames within the Dow Industrials, which show the likelihood of a Change for the disadvantage soon. This investigation is supported by negative implications which we draw from Indicators other than the Candlesticks, which make use of the 2 x 4.5 pillar candles wholesale since the starting place and proceed from there to aesthetic representations which plainly show that Dow charges are quickly coming to a top.William Kurtz
November 11, 2009