|Pop and Drop! Was that the Top?
by Michael Nystrom
A picture is worth a thousand words, so I'll let the picture above speak for itself. The market was up and at'em this morning, off to the races like the bull from late 20th century America was back in town. Just a whiff of good news and they're off and running again lately. It's a feel good kind of time: The war is over and won, we've got tax cuts, the credit card bills are down thanks to the low interest rates - that means we can spend some more, and summer is on the way!
CNN is not mincing words and is calling the bull a bull!
Here at D2, we'll call bull also - bullsh*t! Don't get fooled - this is not a new bull market. Did the market top out today? Calling a top is a low probability event, so I'm not going to try (anymore). I've learned my lesson. I'll let the picture above speak for itself in the fullness of time. One thing I do know is that the financial system in this country and the world is in serious trouble, and we can't ignore it forever. It will be brought to our attention one way or another, like it or not. Ultimately all the paper wealth we created from paper assets will burn just like paper.
So whether today was the top or not doesn't matter in the long run - the big top is already behind us, and it will be all downhill from here for a while.
If you don't know what the five wave decline means, study up on the Wave Theory, and you'll learn something new & interesting.