15 Year Head And Shoulders Top

One of the favorite formations of technical analysts is the Head and Shoulders Top. A Head and Shoulders Top usually signals a major decline is imminent. The market will fall back to the level where the left shoulder started to form.

Technical chart analysis is not a great tool in and of itself. However, when it aligns with the underlying economic picture, it is just a confirmation of future direction.

There is still time to get short or at least get in cash. Get ready for 1992 levels within the next year.

Hate to burst your bubble, but preparation beats denial every time.

Housing Troubles

So many people just don't, or won't accept the truth. I understand. It is hard to swallow.

I hear it over and over again: "In a few years things will turn around." "We'll sell now, before the credit expires."

I am sorry folks, but housing prices are no where near a bottom. The house you are living in is worth roughly what it was worth in 1992.

You can either eat the loss and work your ass off to pay off the mortgage, or walk away.

But nothing, nothing can change the hard fact that the gigantic housing bubble of the century has burst. I may be even a bit optimistic when I say 1992 prices were correct.

We are on the edge of a Great Deflation like nothing any of us has ever seen before.

If you are lucky, you do not own real estate that was purchased in the last 18 years.

Or you own it outright, and have no need to sell.

I know people can't stand this idea.

Baby Boomers: it's over. The wave you rode in on has gone out to sea.

Thank the Universe if you were wise enough to save and survived this with some of your savings intact.

If not, get real. Denial will not help you. The stock market was a wave you rode. Nothing more, nothing less. You were part of it, but you cannot control its course, any more than a ripple on the Ocean's surface controls the currents underneath.

Housing prices are not done correcting. Not even close.

If We Don't Listen To Volcker

Insightful, prophetic, correct:

http://www.slate.com/id/2245328

Listen To Whitney

If you want to make money this year, or at least not lose any in the market, you must listen to this woman:


I agree with everything she said. Yeah...what she said!

Never Thought I'd Agree With Fareed

Fareed Zakaria is right on about this:

http://www.cnn.com/video/#/video/bestoftv/2010/02/14/gps.volcker.plan.cnn?hpt=T2

I could not have said it better.

Opportunity To Sell

The headlines say the market is up today because of Greece. Don't listen, this is a short covering rally. It is also a great chance to sell or get short.

Here is the news you should be paying attention to:

http://www.cnbc.com/id/35314800

Europe Beware

If you have any doubts about the fate of Europe. Watch this:



Actually, lady, you are saying you want to be a second class citizen by wearing the hijab. Women in most Muslim countries are treated like 3rd class citizens at best. Living in Europe is a total PRIVILEGE. You are only treated well BECAUSE you live in Europe. Trying to convert your mother is shameless. You are a traitor to feminists all around the globe. Did they just put so much fear in your heart that you have surrendered? You have been brainwashed and have lost your mind. You should move back to Afganistan and live among your sisters with the Taliban, where you belong. Islam is not just a religion, it is a political ideology as well.

I feel very sorry for you. I am so sorry about what happened to you, and I am sorry you are afraid and looking to ease your fears through submission to the ego.