Like an island…in the middle of the atlantic…the tsunami comes



perhaps its the pacific – its much colder water too. However, the reality is that yesterday’s gap and the patterns it placed are confusing many. The presumption is that the market is bullish…when we covered a month ago it was bullish…however, we did not go long that move. Now we sit precariously perched in a market looking for divergence and bullish extremes…and we also sit at very high probability reversal levels.  However, it is important to understand that the scope of a larger downtrend…divergences and bullish extremes often do not have time to build. This case looks to be no exception.

There are now complete patterns in the that should be scaring the pants off anyone who is approaching long that particular currency. The setup in the EURO postures for a move of epic proportions…perhaps 1,000 to 2,000 pips down in a matter of a few days. The risk markets are likely to correlate to the movements in the EURO as they did this time. In any case, as I indicated in yesterday’s post…the euro points to parity with the dollar and I think that that progression may likely happen faster than can reasonably be anticipated.

Also, of note is that the already strong buy trigger that triggered last week for US 30 year bonds is still intact and bounced off it…they are about to trigger another risk on desicion point…for the long trade ofr the UST 30 year.

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An update on everyone’s favorite banks



Well Bank of America (BAC) has made quite a move from its counter-trend rally high at $19.86. Today Yahoo Finance featured an article about BAC..they are now going to start charging $5 a month for debit card holders…..but wait, you actually have to use it to get charged…oh how nice of them, making that concession. You can just let your debit card sit in your wallet gathering dust and you won’t get charged! This is nothing short of theft on the part of BAC to fund more bonuses for the top cronies at the bank….this just furthers my conviction of the intrinsic value of this company…..ZERO, and that is exactly where it, along with J.P. Morgan Chase and Goldman Sachs, are headed. Certainly the stock is oversold and can bounce at any time….but the ultimate target is as clear as the morning blue sky. Tick tock goes the clock. GAME OVER Mr. Moynihan. That goes for you too, J.P. Morgan and Goldman Sachs, you are sinking on the same ship as your friend  Bank of America. Congrats, Mr. Moynihan.Mr. DEmon, and Mr. BlankFEIND, you bought your companies  a one-way ticket into bankruptcy.

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Douglass Lodmell Interviews Robert Prechter



I would like to introduce Douglass Lodmell. Mr. Lodmell is an Asset Protection Attorney based out of Florida. His clientele include high net worth individuals who wish to protect their assets in the case of a lawsuit. However, with the precarious times we find ourselves in, Douglass Lodmell is worried not only about losing one’s assets in a lawsuit, he is worried about those assets losing value. Accordingly, his number one goal is safety for his clients. Robert Prechter is the President and CEO of Elliott Wave International, a market forecasting firm based out of Gainesville, GA. Similar to Douglass Lodmell, Robert Prechter is advocating nothing but the safest instruments possible at this moment in time. Below is an interview that Douglass Lodmell recently did with Robert Prechter. It offers some very insightful information that one surely won’t find in the mainstream media. For best viewing quality, scroll down to the lower right hand corner of the video and select “watch on youtube” and then select 720p and full screen.