27
Feb
stored in: Uncategorized and tagged: , ,

indicators

As I was going over some indicators after the close I noticed that today was the largest volume day on the Dow Jones ever. I joked during the trading day on twitter that we were going to crash on Monday and that an virtual investment advisor from Ameritrade had informed me. I’m beginning to think that smart money was taking advantage of today’s rallies to unload shares to bottom-fishers trying to pick a bottom.

9 Responses to “Storm Before the Storm”

  1. headlinecharts Says:

    Hi,

    I thought of you the other day because Peter Schiff was on CNBC, and I know you are a fan of his. He was his usual self, not listening to anyone, rude, interrupting. But, of course, he was right about the economic disaster so he deserves respect. He predicts a collapse of the dollar due to inflation and surging gold.

    Robert Prechter was on bloomberg the same day. He is another bear who predicted the crash and I think he may be even more bearish. But he predicts a surge in the dollar due to wild deflation and a collapse of gold.

    I'm wondering which bear to believe and what you think? How do we know who is right?

  2. Tom Says:

    Probably both. In sequence. Deflation first. Falling asset prices obviously can destroy dollars faster than the fed can print them when velocity collapses. Not until the last inflation hedge has been crushed will inflation take the stage. Right now there are lots of gold bulls and much discussion of shortages. Shortages normally are the rhetoric of tops, not the rhetoric preceding price acceleration. Remember peak oil?

  3. Tom Says:

    All three major currencies should fail. The progress of the Euro will have a great influence on the eventual consensus solution. The "Amero" seems to me a non-starter. Those who believe it possible under-estimate the deep anti-Americanism in Canada toward American institutions. The rejection of American institutions is a fundamental cornerstone of Canadian identity. Fragmentation under economic stress is more probable than unification. The most probable currency trends are globelization or privatation.

  4. headlinecharts Says:

    You know, I just don't see how both can be right even if looking at different time frames. But the issue goes beyond my abilities.

  5. BMB Says:

    A good chunk of that volume was the 188 BILLION shares traded in Citi.

  6. BMB Says:

    Ooops – forgot the decimal point. Let's make that 1.88 billion…

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