Sat Nov 20

EURUSD recurring buying support detected again and USD selling
pressure detected again. This recurring USD weakness is bullish for
stocks and vice versa. However, long term USD bullish warnings
have not changed.

Despite global index daily charts being extremely overextended,
more rally is possible.

Unfortunately similar to the overbought conditions first noted in
early 2007 – this serious over extension from March 2009 is setting
us up for another waterfall crash similar to 2008.

But it may be worse than the 2008 crash since markets are now
dangerously very over stretched. When this choppy and unstable
uptrend does end – extreme caution will be warranted in my
opinion.

My earlier warnings commenced January 2007 and continued during
2007/2008. I see a pattern repeating itself here.

The serious overextension this year is very concerning and will end
in tears. Market intervention and suppression of natural market
forces only delays the inevitable reversion to the long term mean
that must occur. Nothing can stop it and the longer it’s delayed
the more unstable the market becomes and the worse the reaction
will be when natural market forces reassert control.

The major correction in 2007/2008 was predicted by some market
analysts including myself. It was not a ‘Black Swan’ event that
suddenly appeared out of nowhere. The charts made it very clear
back then what was ahead and they are doing so again. My long
term charts warn of another ‘ black swan market crash that
nobody could have predicted ! ‘

I’ll be looking for bearish USD trades on Monday. Due to choppy
mixed signals and lack of market consensus, my trades can be
very short term.

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I read comments but they're not published. Troll IPs are automatically trashed. [crinia AT gmail DOT com]

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