29 June 2013

 My longer term indicators are still in fairly high territory.  Short term has bounced as well.

 The McClellan is oversold.  It has broken out of its upward trending motion.  This represents severe inside selling that isn't readily apparent in the Dow Jones thirty.  Any rally after this failing to achieve new highs should represent a significant peak and precede extreme selling.

 Short term has rallied all the way back to overbought territory.  The bipolar gambling attitudes of traders never seems to leave.

Selling Climaxes are getting high again.

Gold and silver continue to be smashed.  Most charts I look at show them to be oversold.  However, I won't be buying until they break out of this downtrend.

"In the Colonies, we issue our own paper money. It's called 'Colonial Scrip.' We issue it to pay the government's approved expenses and charities. We make sure it's issued in proper proportion to make the goods pass easily from the producers to the consumers. In other words, we make sure there is always adequate money in circulation for the needs of the economy.

"In this manner, by creating ourselves our own paper money, we control its purchasing power, and we have no interest to pay, to anyone. You see, a legitimate government can both spend and lend money into circulation, while banks can only lend significant amounts of their promissory bank notes, for they can neither give away nor spend but a tiny fraction of the money the people need. Thus, when your bankers here in England place money in circulation, there is always a debt principal to be returned and usury to be paid. The result is that you have always too little credit in circulation to give the workers full employment. You do not have too many workers, you have too little money in circulation, and that which circulates, all bears the endless burden of unpayable debt and usury."
-- Benjamin Franklin