What Expiring Bubbles Look Like

The Nasdaq bubble popped in 2000 after motoring upward on increasing volume in two separate phases. Volume rammed upward and RSI diverged. Like shootin’ fish in a barrel, it was, except that at the time I was too inexperienced to see it. It was a steep slope and blow out.

compq

 

The 2006 bubble in copper made a consolidation and a steep slope and blow out of its own with a little help from rising volume, but nothing like the above. No notable divergences here. The inflation trade of the time was starting to rotate, and rotate commodity herds did…

copper

 

…to Uranium for instance. This one had 3 separate pumps to the top with volume surges on the first two and lamer volume on the top, which like others is a near-vertical slope.

uranium

 

Then came the PEAK OIL!!! induced mania and bubble. Pickens, take a bow. Martenson, take a bow. Whoever else was out front pumping, take a bow. You even had congress convening and trying to legislate oil speculators as if it were some sort of national emergency instead of a friggin’ play, a bubble. The volume surged, congress convened and the bubble, which never went vertical, finally expired.

wti crude oil

 

Now for silver, which reached the fabled Hunt Brothers bubble high of 1980. Why it was going to its next stop at 100/oz. and beyond, maybe even on par with gold (little brother Palladium has become Platinum’s daddy after all). Silver was a bubble in the spring of 2011 as Bill Gross shorted long bonds because… INFLATION!!! among other hype making the rounds at the time (of inflation’s dramatic blow out). A big-time volume surge accompanied silver’s final drive to 50.

silver

 

Okay, speaking of Palladium here is the current specimen. There’s the vertical price action, there’s the building volume and there’s the overbought RSI. Matter of time?

palladium

 

And that brings us to the current headline bubble du jour. Oh wait, it’s not vertical and volume is not building. What is the meaning of this??

1 2
View single page >> |

Subscribe to NFTRH Premium for your 40-55 page weekly report, interim updates and NFTRH+ chart and trade ideas ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.