This is the second big drop in the last month. Earlier, the Nikkei already entered BEAR market territory by dropping just over 20%. This week, it looks like it drop even more.
Like the video above says, I also feel that this is the start of a big negative sentiment and negative turning point for the world economy. Japan cannot print out of the two decade long stagflation and neither can the United States.
Looking at the chart of the Nasdaq composite, you can see that several key indicators show that the move higher or sideways is not over. The RSI is still increasing and both the MACD and Slow Stochastics have not crossed yet…in short the Fed and Wall Street is going to keep this going a little longer (manipulation).
The last year or so the stock market up trend has been fueled by “monopoly” money, yes printed U.S dollars from the American Federal Reserve has printed 85 billion U.S dollars a month and injected it into U.S Treasury bonds and the stock market.
See weekly charts below:
You see the economy is not getting better, the U.S controlled mainstream media has been lying to the world. Sooner or later, the printing press for U.S dollar stops, the manipulated stock market will crash big time.
If so many wealthy people are on the sidelines, concerned more about wealth preservation than taking risk to make some yield. Then the question is who is driving up the stock market?
Michael Purves, Chief Global Strategist and Head of Derivatives Research, Weeden & Co says a correction is underway in U.S. equity market. He also suggests short-term bullish trade opportunities in gold.
I have recently updated to a new banner on the blog and also upgraded the blog software.
The new banner signifies a new phase in my life and as well, it is a sign of the economic times. As you can see there is a chart showing debt going down and assets increasing…as well there is pictures of silver and gold bars on the right of the banner.
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