World Stock Market Indexes
September 9, 2023: Stock market indexes are 99% the result of CENTRAL BANK actions and a HUGE BUBBLE.
| Our short-term BUY-SELL indicator - click to enlarge. |
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"We shall see NO MARKET CRASH...but a weaker Dollar and more Nominal Confusion (higher stock markets worth less!"
The FED and ECB, the Bank of Japan, and the Swiss National Bank not only print money...they also BUY shares. Stock markets will continue to go up as long as MONEY is PRINTED and the additional marginal amount of freshly printed money has the power to buy left.
Goodbye to Overbought, and welcome to Oversold?! Overbought and Oversold mean nothing in a system where equities (stocks and bonds) are acquired with worthless fiat money (QE)...as is the case today! The number of ZERO'S the stock market indexes have means ABSOLUTELY NOTHING. Even when a Stock Market rises by 100,000%, it will still result in a TOTAL LOSS when expressed in Worthless Fiat Currency.
Excess liquidity flows into financial assets when the money supply grows faster than nominal GDP. However, the economy absorbs more available liquidity if the money supply grows more slowly than the nominal GDP. That’s one reason stocks go up so much when the economy is weak but the money supply is rising. At this time, with COVID-19, the Central Banks are exponentially creating money out of thin air, propelling stock markets into Hyperinflationay heavens. High nominal stock markets, however, will not enable you to buy 3 EGGS. Only those who don't do their homework and fail to understand what is happening will keep chasing Fools Gold and continue investing in stocks.
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The VICIOUS part of these Bull Markets is that stock markets will continue to bubble when expressed in FIAT MONEY. Gold and silver will perform better!... |
Dow Jones Industrials &SP500: Dangerous BUBBLES and Casinos.
| Dow Target & Support | Central Banks are buying shares... | Dow in Real Money | |
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Bullish Objective Dow |
38,200 |
 Bearish |
| Resistance |
36,800 |
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| Support |
33,800 | ||
| Bearish Objective | 28,800 | ||
| Technical pattern | Breakout + Expect a Backtest before Higher! |
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The Dow to Geyser to 300,000 and higher after this correction is over, and we have QE4 & QE5 (Hyperinflation).
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| Short term candle |
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Long term candle |
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S&P 500 Large Cap Index: Higher we shall go, and NO MARKET CRASH!
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Bullish Objective | 6,200 |
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| Resistance | 4,800 | ||
| Support | 3,800 |
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| Bearish Objective | 3,200 |
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| SP500 Target & Support | Technical pattern | Breakout+Backtest! |
SPX in Real Money is Bearish. |
Click to enlarge.
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| Short term Candle |
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WELCOME to ZIMBABWE - stocks are REAL ASSETS
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| Long term Candle | ||
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Click to enlarge.
Dow Jones Transportation index
| Dow Jones Transportation Index | |
| Bullish Objective | 17,800 |
| Resistance |
16,800 |
| Hard Support - Stop |
14,800 |
| Bearish Objective | 9,200 |
| Technical pattern | Breakout+Backtest! |
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| Short candle | Chart comment |
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| Long candle | |
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CENTRAL BANKS BUY SHARES...and print more money to buy more shares (Japan, Canada, Australia, FED, ECB)! We expect HIGHER STOCK MARKETS! Mind the LT Double Top breakouts and positive Backtests!
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| UK FTSE | Swiss SMI | German DAX | SA-Dow | Canada Dow |
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| Bull Trend - £ is VERY WEAK! | Bull Trend | Bull Trend |
Rand is VERY WEAK! Bullish Head & Shoulders |
Bull Trend |
| Shanghai index | Japan |
Spanish IBEX | Austrian ATX | Belgium Dow |
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| Strong Yuan |
Nominal Confusion Trap: Yen is VERY WEAK! |
No Peseta to devaluate = crashing Spanish assets. |
No Franc to devaluate = crashing Belgian assets. |
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| World Index | Australia | Portugal Dow | French CAC | Dutch AEX |
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| No Escudo to devaluate = crashing Portuguese assets. | ||||
| Russia | Brazil | Greece | ||
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Click here to see how BAD reality is when expressed in REAL MONEY |
Click here to see what the FIAT reality will be. |
| Strong Ruble | No Drachma to devaluate = crashing Greek assets. | |||
The Footsie (British stock market index) is my Canary in the Mineshaft for the Dow Jones... and the index could be going for a winning run: breaking through the triple Top (with no mainstream attention). We now only have to wait until the breakout levels are positively tested. Once they are, I am sure the Dow Jones and stock markets, in general, will resume their climb of the Wall of Worry. See long-term charts for more critical resistance levels.
Uncertainty will grow over the coming months until the Hyper-inflationary depression sets in, and World Stock markets and interest rates start dancing to the tunes of the Zimbabwe scenario: rising Nominal Stock markets because of Quantitative Easing and Hyperinflation...but in the end, the Gold and Silver sector will perform a lot better. The stock markets of those countries (ex. Belgium, France) where more TAXATION is expected and those countries running into severe trouble (Greece, Italy, Portugal,...) will underperform. What is happening in South Africa (JSE) is an example of what is to be expected from other Stock Market indexes! [there are Capital controls in South Africa]
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Dow in Gold-CAUTION- BEARISH FLAG From now on, Gold will continue to perform better than the Dow and Stocks!...mind the bearish wedge....it has been activated and means Stocks Markets will come down, and the Gold & Silver sector will go up!  June 9 - June 18, 2022/23: Expressed in Real Money The CRASH is resuming its bearish trend! Therefore it no longer makes sense to stay in Equities. ..They are safer than bonds, bank deposits, savings accounts, and cash...
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Belgium is a tertiary dangerous temporary haven for capital. It will remain so until Wealth and Capital gain taxes are enforced. This became a reality in 2017. High time to move your marbles... Once capital controls are enforced, the stock market will behave similarly to the SA-Dow. |
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| The Footsie is a secondary escape route for capital leaving the European continent. Remember that London is a Tax Heaven, and the city will continue to attract capital. Especially so after the Great Escape (BREXIT). The least we can expect is sideward bullish action until Hyperinflation breaks out and the index soars to the upside...The same rule applies here for the Dow Jones and the Nikkei: it doesn't make sense to buy/hold shares when the currency comes down! |
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Stockcharts has discontinued the charts for the FOOTSIE...see our PF-chart
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| The Fiat Money BULLISH potential is 50% to 500% - use Trailing Stops and BUY during Corrections and Panic Situations! In the summer of 2017, we had a new all-time high in the S&P 500. We have much higher to go from here(after the correction). The next leg up will be broad-based among many sectors, and investors should begin accumulating. Note that gold and stocks can both go up at the same time. Only the Gold miners will go up at a faster pace.
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The worst-case scenario and actual Target of the correction for the Dow is 14,200 & SPX target is 1520. The bullish targets are exponentially higher. We have robust stock markets. AMAZING in times of recession. But a NORMAL consequence of Money Printing (QE). Markets will continue to go up as long as new money is created, providing no accidents exist.
| Be patient and use trailing stops - Use corrections to accumulate more common stocks, but don't exceed the proportions shown in the Investment Pyramid. |
Designated EUROPEAN STOCK markets (see below) are possibly building a long-term bottom..others sit in a bull trend! The Chinese Stock and Japanese stock markets must be followed up closely...The Japanese Printing press is doing overtime, and the freshly created fiat money is spilling into the Japanese stock market. But the Nikkei won't make up for the weak yen. [Japan's PM has vowed to double the money supply]. In November 2014, the Chinese Stock Market Index broke out!
More QE or money printing for the EU, Japan, and the USA...Because we have communicating financial vessels (see Investment Pyramid), the freshly created capital will continue to seep into the stock markets. The more fiat money, the higher the markets! The best-performing markets are the Johannesburg Stock Exchange, Caracas (Venezuela), and the Iranese stock exchanges. Stock markets in the USA are poised to rise more until the Printing Press stops or we have an accident!
Capital fleeing RED Europe will push up north-American markets to record levels, and the pressure of freshly created fiat money can be so immense that the Dow Jones could fly to 300,000 and higher. Specific European Markets must be poised to keep sliding or (best case scenario) will move sidewards. In contrast, bullish markets it will be for the North- American markets (the USA and Canada). It's readily apparent what effect the trillions and trillions of dollars, Yen's, and Pounds central banks have pumped into the system are having on shares. Add to this Capital, which is increasingly fleeing Europe and buying America and vice versa. Basically, all stock markets should be crashing under the pressure of Deleveraging due to the Western World is financial problems. Still, Authorities are doing their best to avoid a stock market crash by pumping money supply into Infinity.
| Currency controls: when Capital is not allowed to leave the country because of capital controls, and investors stop trusting Authorities, STOCKS are often the best way to preserve savings. We have this in Zimbabwe, South Africa, and Tehran (Iran). |
Do you know that Authorities have unlimited Fiat money to play with and that over $ 1.4 quadrillion DERIVATIVES can be used to scare fiat money out but also into Shares, Gold, Silver, and Commodities? (and options to buy it) or Treasuries. I assume that similar techniques can be used to keep the stock markets happy. However, one may never forget that the ULTIMATE LOCATION where the authorities want your money is in WORTHLESS FIAT TREASURIES and FIAT MONEY (bank deposits, savings accounts. treasuries).
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In the 1930s and only six months after the BIG CRASH, the stock market had recovered half of its losses. (click on the thumbnail for the long-term chart) Stocks are REAL ASSETS. During the Hyperinflation in Zimbabwe, stocks were used as money. 1932 we had a bottom for the London Stock Exchange. In less than four years, or 1936, we had a new all-time high... |
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This is what the SP500 may look like over the coming years. I expect the index to continue to rise to new records UNTIL we have a severe correction or the Great Crash of the 21st century. |
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