Thursday, February 4, 2010

Dow Gold and PE per Darby

dnarby has been posting good stuff at HawaiiTrading

Here is an interesting link.   Sometimes long term charts are so informing.   We get all caught up withthe latest zig zag on a sub minuette Elliot wave and forget the big picture.

Admittedly though, after fundamentals have been so wrong for so wrong, it's tough to place a high leverage bet based on "what should be".   Trying to catch ever peak and valley, sometimes referred to as "getting cute" is also a tough game, as the market is tricky...and this game is for all the money in the world.   HBB is running this game, and they are highly motivated, they bought the political and media systems in order to line their pockets.

People say the "banks don't get it", but that is not really fair....they took all the money, they "got it".   They might not realize the extent of backlash that is possible, but maybe the sheeple won't raise their voices as long as they have their programmed media and an Old English 800 Malt Liquor....(cheap potent booze is becoming more popular these days).  Chart is from dnarby.

This long term chart of the Dow/Gold is also interesting.

Look at the latt 80's after an oil crisis, which this then launched into a bank crises.....hmmmm....sounds familiar.  high energy costs tend to take the wind out of the sails of the economy....except when there is easy money everywhere...then the cranked up economy can keep going, even for years, in the face of absurd fundamentals, which is what happened.

Check out dnarby and his blog "TheTail Does Not Wag the Dog".    Yeah...and Emerging Market will support the US through trouble...(thats a joke...)

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