Roger Wiegand is a market trader in association with Taylor Hard Money Money and Jay Taylor. He believes we are in a time that is similar in many ways to the 1930’s Great Depression and gives support for this in the discussion to follow.
“This 1934 cartoon could have been printed in a newspaper last week. Policies of the Hoover and Roosevelt administrations are in today’s fiscal movies as a re-run. People’s heads are the same and so is government on the path to destruction. They do not have the courage to do the unpopular right thing so Greater Depression II goes on for years with more smoking wreckage, dissention and mayhem. The end of course is World III that under today’s circumstances could be much worse than we can imagine especially if North Korea or some fool in the Middle East gets his hands on some very naughty weapons.”
Note the cart side panel: “Young pinkies from Columbia and Harvard.”We see Stalin at lower far right: “How red you’re sunrise is getting.” The artist,(lower left) says it all declaring a new dictatorship. That’s where we’re going.
Obama’s “Planned Economy Or Planned Destruction” Copies This 1934 Cartoon.
Chicago Tribune 4-21-34
1934 cartoon that applies today. -Northern Advisor
Basing Recovery Or More Selling?
“This chart looks clearly negative and we have warned so in our last week’s newsletter. However, technically, we can see price supported on the down-sloping channel line at 1083 just under 1100. Analysts were arguing the support anywhere from 1070 to 1085. Our tech work says the main number is 1075. On this Sunday afternoon of 1-31-10, we are seeing March E-mini’s in the green at 1072.50 as some electronic and overseas buyers move long taking price back toward 1075. If we get a strong upside open on Monday or, if we get a rising close on Monday afternoon (February 1) the price could support and do a pivot reverse. This is important for our precious metals traders as we think these shares remain tied, somewhat, to bigger stock markets. Will they diverge? Yes, they will but when?”
“Last week’s breakdown led me to believe that a medium-term correction was just beginning. So far this week that opinion has been reinforced by market action. For example, as of last Friday, short-term indicators were very oversold, and a technical bounce was to be expected; however, the market instead has drifted lower, causing me to assume that the oversold condition is being cleared by a decelerated decline rather than a reaction rally. This is bearish behavior, but there is no technical reason to believe that it is announcing a new bear market, only that bullish behavior will be in abeyance while prices work through the correction.” -Carl Swenlin, Decision Point 1-29-10
“The weekly-based chart of the S&P 500 shows that the PMO is much overbought and has crossed down through its 10-EMA. It could take a few months to clear this …by bringing PMO back to the zero line.”
“Bottom Line: I would like to see this correction continue for a few months. Keep in mind that corrections in bull markets do not have to be straight down affairs, rather there can be extended movement to the side and slightly down that serves the purpose of getting internals set for another advance without causing too much price damage. The most obvious immediate support is around 1030, followed by a series of previous lows going down to 980, which would be the worst case if this correction is to remain in the "mild-to-moderate" category. If prices eventually drop to the area of the support at 870, that would be severe enough to start questioning our bull market thesis.” -Carl Swenlin Decision Point 1-29-10 (Editor: On 2-2-10 shares recovery underway just as we expected).
Jay Taylor
Gold Investor
A 1930’s Re-Run In Process For Our Greater Depression II
Roger Wiegand is a market trader in association with Taylor Hard Money Money and Jay Taylor. He believes we are in a time that is similar in many ways to the 1930’s Great Depression and gives support for this in the discussion to follow.
“This 1934 cartoon could have been printed in a newspaper last week. Policies of the Hoover and Roosevelt administrations are in today’s fiscal movies as a re-run. People’s heads are the same and so is government on the path to destruction. They do not have the courage to do the unpopular right thing so Greater Depression II goes on for years with more smoking wreckage, dissention and mayhem. The end of course is World III that under today’s circumstances could be much worse than we can imagine especially if North Korea or some fool in the Middle East gets his hands on some very naughty weapons.”
Note the cart side panel: “Young pinkies from Columbia and Harvard.”We see Stalin at lower far right: “How red you’re sunrise is getting.” The artist,(lower left) says it all declaring a new dictatorship. That’s where we’re going.
Obama’s “Planned Economy Or Planned Destruction” Copies This 1934 Cartoon.
Chicago Tribune 4-21-34
1934 cartoon that applies today. -Northern Advisor
Basing Recovery Or More Selling?
“This chart looks clearly negative and we have warned so in our last week’s newsletter. However, technically, we can see price supported on the down-sloping channel line at 1083 just under 1100. Analysts were arguing the support anywhere from 1070 to 1085. Our tech work says the main number is 1075. On this Sunday afternoon of 1-31-10, we are seeing March E-mini’s in the green at 1072.50 as some electronic and overseas buyers move long taking price back toward 1075. If we get a strong upside open on Monday or, if we get a rising close on Monday afternoon (February 1) the price could support and do a pivot reverse. This is important for our precious metals traders as we think these shares remain tied, somewhat, to bigger stock markets. Will they diverge? Yes, they will but when?”
“Last week’s breakdown led me to believe that a medium-term correction was just beginning. So far this week that opinion has been reinforced by market action. For example, as of last Friday, short-term indicators were very oversold, and a technical bounce was to be expected; however, the market instead has drifted lower, causing me to assume that the oversold condition is being cleared by a decelerated decline rather than a reaction rally. This is bearish behavior, but there is no technical reason to believe that it is announcing a new bear market, only that bullish behavior will be in abeyance while prices work through the correction.” -Carl Swenlin, Decision Point 1-29-10
“The weekly-based chart of the S&P 500 shows that the PMO is much overbought and has crossed down through its 10-EMA. It could take a few months to clear this …by bringing PMO back to the zero line.”
“Bottom Line: I would like to see this correction continue for a few months. Keep in mind that corrections in bull markets do not have to be straight down affairs, rather there can be extended movement to the side and slightly down that serves the purpose of getting internals set for another advance without causing too much price damage. The most obvious immediate support is around 1030, followed by a series of previous lows going down to 980, which would be the worst case if this correction is to remain in the "mild-to-moderate" category. If prices eventually drop to the area of the support at 870, that would be severe enough to start questioning our bull market thesis.” -Carl Swenlin Decision Point 1-29-10 (Editor: On 2-2-10 shares recovery underway just as we expected).
Jay Taylor
Gold Investor