Stocks And Precious Metals Charts - What A Surprise - The Endless Wash And Rinse
A bull trap it was indeed. Whipsaw city.
A little of the old wash and rinse. What a surprise.
I played it as a trap and it worked out fairly well. It was worth a go.
So, in honor of the Non-Farm Payrolls report gold and silver were smashed.
Stocks declined. The dollar strengthened.
And Wall Street insiders win again. Hi ho.
I made some modifications to the CrashTrak model in the data for 1929. I tightened up the timeframes to bring it more into line with a 'crash' as a singular event, and not the ensuing depression that resulted from the numerous policy errors by the Republican government and the Fed.
The 1929 event was about three months in duration, and 1987 was about two months.
Given the amount of government and Fed intervention in markets that became policy after 1987, I think we can be flexible about our current timeframes however.
A crash in slow motion?
Let's keep an eye on that second high and the principle of lower highs and lower lows.
I also include an analysis of the 1987 crash that I did in 2004 for my old Geocities blog.
Have a pleasant weekend.
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Disclaimer: These are personal observations about the economy and the markets. In providing information, I hope this allows you to make your own decisions in an informed manner, even if it is from ...
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