Now, It’s A Depression

3:43 p.m., EST

Recession’s over … Depression starts

Boots on the ground update from Dan at ‘I Allegedly’.

Drastically reduced economic activity at premium retail locations.

From Uneducated Economist: There’s news the lumber mills are going to curtail production … right in the middle of summer … the high season.

Couple that with the strange ‘going’s on’ reported at this link concerning the database that’s being monitored.

Then, we have another strange ‘coincidence‘ that takes place every hundred years like clockwork.

Which brings us to the sector at hand: Biotech

SPBIO Analysis:

We’ve taken the hourly chart of biotech SPBIO, and inverted it; shown below:

Price action pushed through the spring set up conditions noted in the last update.

SPBIO went on to retrace to the 38%, level … where it is now.

Looking at the price structure of inverse fund LABD (not shown), the downward thrust energy on a daily basis has declined significantly.

That analysis to be forthcoming.

Stay Tuned

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

Psychologically Unprepared

11:43 a.m., EST

When the break comes … it’s not coming back

Nearly 100-years ago, Wyckoff, stated:

‘If you can’t completely ignore the news and the financial press, you will never be successful in the markets’ (emphasis added).

In line with that, we have this: The very first sentence from this article out of barchart is questionable to say the least.

First:

There is no rapid ‘re-opening’. There never was. There is no ‘pent up’ demand.

Massive credit card usage shows the U.S. consumer has been decimated; using credit just to survive.

It should be (but somehow for some, it’s not) obvious we’re in a controlled demolition of the economy (including the food supply) on a world-wide scale.

Second:

Price increases are the result of supply chain (also, controlled demolition) shutdown not inflation.

Uneducated Economist has probably done the best job of ‘boots on the ground’ work to completely dispel the inflation false narrative.

He called the current and now waning lumber price spike two years ago. That’s how you know who to trust or believe. Take a look at their past analysis and see how it ‘aged’.

Third:

The U.S. population collectively, has never experienced real hardship. Those who made it through the Great Depression have all but died off.

There is no one around to give said population a swift kick in the pants and tell them to ‘suck it up’.

Northman Trader

Sven Henrich has come out with an excellent market update, linked here.

Towards the end of his analysis he states; ‘when the break comes, it will be quick, deep, keep going and most (if not nearly all) will be psychologically unprepared.’

Which brings us to biotech.

LABD Analysis:

Biotech SPBIO, is back as downside leader: Down just over -25%, from its highs in February, this year.

The daily chart of (inverse fund) LABD is below. The market itself is showing us it wants to follow the repeating pattern of trendlines (not advice, not a recommendation).

If the entire structure (from the February low) is actually a trading channel, it’s hard not to overuse the word ‘massive’.

Non Confirmation:

As of this post, the Dow, the S&P and the Composite are unchanged to slightly higher. Yet biotech SPBIO, is down -1.2%.

We won’t know until it’s all over … but it looks like biotech could somehow be the catalyst (along with the dollar and gold?) that precipitates the final reversal in the overall market.

Stay Tuned

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

Depression Diaries

12:26 p.m., EST

The Great Depression is about to be eclipsed by ‘The Greater Depression’.

The Great Depression Diaries, is an excellent glimpse into the realities and timeline of a financial collapse.

Part 1

Part 2

Part 3

After watching and listening to all segments, if you changed the dates, you’d think it’s talking about the here and now.

Three key takeaways are:

  1. Intentional destruction of the food supply
  2. Real unemployment numbers falsified
  3. People starved to death

We can look at today’s payroll data as a pivot point. For whatever reason (out of work, being paid not to work), the economy’s not coming back.

The belief the economy’s going to be stronger once the benefits run out (as stated in the linked article) is false.

The current economy is being intentionally destroyed.

That’s not too hard to determine.

Here’s just one more bit of data (unverified, but still of note) to support that assessment.

If you’re unemployed, starving to death, you’ll be a ready face-diaper wearing compliant subject; easily coerced into being injected (executed).

Obviously, the goal is to be as independent, self-employed as possible so we’re not that person.

Which brings us to the culprit du jour: Biotech.

Yesterday, the expectation was for a reversal and test (that day) before SPBIO continued its downward trajectory (LABD higher).

It looks like the test is lasting two days (maybe more) instead of one.

Inverse fund, LABD is currently trading near 24.15. That’s right in the vicinity of the expected range between 23.90 – 24.30, stated yesterday.

LABD did push a little bit lower in the early session to 23.68, but still within expected range.

LABD is testing the right side channel line and trying its best to break through. Thus far, the low for the day remains at 23.68.

If there’s an upward (LABD) reversal from here, a Fibonacci Day 8, from the original Day 55 low, it would give more confirmation we’re at least following the trendline; potentially at the very right side of a huge trading range.

Stay Tuned

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.