Monday, January 9, 2012

9 Jan 2012

 This is a long term picture of the Dow.  Moneystream, in the middle, includes both price and volume action.  As you can see, it has nowhere near recovered as well as prices have.  I have no idea if this will mean anything, but I do use it for shorter term predictions fairly accurately for both sides of the market. 

As for the much longer term picture, you can see there is still quite a bit of mean reversion possible.  This is a logarithmic chart.  The linear chart makes the current bubbles look absolutely ridiculous.
 Medium term still looking weak.
Short term looks basically lost along with the indexes.  However, it has formed lower peaks.  Even if this gets a bounce back into the overbought territory, it will be on borrowed time of euphoria.

"When you recall that one of the first moves by Lenin, Mussolini, and Hitler was to outlaw individual ownership in gold, you begin to sense that there may be some connection between money, redeemable in gold, and the rare prize known as human liberty."
-- Congressman Howard Buffett (Father of Warren Buffett) from a 1948 issue of the Commercial and Financial Chronicle

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