February 5-6, 2026: Stock market indexes will go A LOT HIGHER than you can imagine...but a weak dollar will eat away all profits.
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"We shall see NO MARKET CRASH...but HIGHER MARKETS, a weaker Dollar, WEAKER CURRENCIES and
more Nominal Confusion: "HIGHER STOCK MARKETS WORTH LESS and worth NOTHING when expressed in Real Money!"
The US Government has started to buy American stocks (just like in Japan & Switzerland)
The Fed, ECB, Bank of Japan, and Swiss National Bank print money and buy shares. Stock markets will continue to rise as long as
MONEY is PRINTED, and the additional marginal amount of freshly printed cash has no power to buy it.
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The VICIOUS part of these Bull Markets is that stock markets will continue to bubble when measured in FIAT MONEY, and they will suffer dramatically because of the Great Taking.
Gold and silver will perform better!...
Review the PF charts for the indices expressed in Gold and recognize that stocks are not worth the risk. Even if the Dow Jones Industrial Average soars to 300,000, your DIGITAL portfolio will only buy 3 eggs. You risk a bail-in and the freezing of your portfolio.
Stock market indexes may double, triple, and even grow tenfold...only expressed in Fiat Money, until we have an "overnight crash."
Never forget that Stock Markets climb a Wall of Worry and slide off a climax of enthusiasm...
However, it makes no sense to buy and hold US stocks once the US dollar resumes its Bear Trend!
Mainstream media will never call a crash —and won’t ever call it!
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1. Dow Jones Industrials & SP500: Dangerous BUBBLES and Casinos. After this correction, the Dow will rise to 300,000 and higher, and we will have QE4 and QE5 (Hyperinflation).
| Dow Target & Support |
Central Banks are buying shares... |
Dow in Real Money |
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Bullish Objective Dow
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48.000
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 Bearish |
Resistance
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48.000
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Support
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36,000 |
| Bearish Objective |
32,000 |
| Technical pattern |
Bull Trend - Mind the BEAR TREND on the PF to the right->>> |
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Short-term candle
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Chart comment |
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- Feb 1 - Mar 12, 2016: Short-term bullish
- Jan 8, 2017: Is the Correction due January 20? -target of the PF chart: 28,400
- Jan 9, 2018: Buy Climax?= DANGER...see TARGET on PF chart.
- Dec 28 - Jan 22, 2019: Backtest
- Jan 6 - Jan 28, 2020: I have vertigo.
- Jan 8 - Mar 5, 2021: Overbought + Bearish Divergence = SELL
- Jan. 22 - Feb. 23, 2022: There we go: a solid correction (at least)
- Dec 1 - Jan 11, 2023: Dow OVERBOUGHT...and a weakening Dollar!...
- Nov. 2: Technically, a BUY. See the bullish divergence.
- Jan. 14 - May 16, 2024: expect a CORRECTION in the coming weeks.
- June 23 - July 18: A BREAKOUT—Assuming central banks continue to print massive amounts of money (and they have no choice), the stock markets will continue to soar in a Venezuelan, Argentinian, or Turkish style. You will be happy, but you will have nothing: "Nominal Confusion"!
- Nov. 15 - Mar. 3, 2025: running into resistance and overbought.
- Mar. 22: end of correction and BUY!
- Oct. 15: The US government started buying American stocks.
- Dec. 11: Shall we see higher?..probable!
- Jan. 24 - Feb. 5, 2026: Breaking out?
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Long-term candle
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2. S&P 500 Large Cap Index: Higher we shall go, and NO MARKET CRASH: Long Term, the SP500 performs worse than Gold and will continue to do so!
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Bullish Objective |
8,800
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| Resistance |
6,800 |
| Support |
5,800 |
| Bearish Objective |
4,800
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| SP500 Target & Support |
Technical pattern |
Top of channel. Mind the BEAR TREND on the PF to the right->>> |
SPX in Real Money is Bearish. |
Click to enlarge.
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Short-term Candle
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Chart comment |
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WELCOME to ZIMBABWE - stocks are REAL ASSETS
- Feb 1 - 12, 2016: Short-term bullish
- Jan 8, 2017: is the Correction due January 20?
- Jan 9, 2018: Buy Climax?= DANGER...see TARGET on PF chart...
- Dec 28 - Jan 22, 2019: Backtest
- Jan 6 - Jan 28, 2020: I have vertigo.
- Jan 8 - Mar 5, 2021: Overbought + Bearish Divergence = SELL
- Jan. 22 -Feb. 23, 2022: The beginning of the "severe correction"???
- Oct 15: Probable END of CORRECTION. Don't expect a Crash!
- Jan. 11, 2023: dangerously OVERBOUGHT...and a weakening Dollar!
- Nov. 2: Technically, it's a BUY at the present level.
- Jan. 14 - May 16, 2024: Bearish Divergence
- June 23 - July 18: A BREAKOUT—Assuming central banks continue to print massive amounts of money (and they have no choice), the stock markets will continue to soar in a Venezuelan, Argentinian, or Turkish style. You will be happy, but you will have nothing. This is "Nominal Confusion"!
- Nov. 16 - Dec. 19 - Mar. 19, 2025: The market is overbought and running into resistance. Expect a correction in Q1 2025.
- April 8: End of the ABC correction, also known as the backtest...expect higher returns in the coming months.
- July 4 - Aug. 12: uptrend resumed.
- Sep. 15: DANGER - ready for a correction and lower?!
- Oct. 15: The US government started buying American stocks.
- Nov. 19: Top of the Trend channel = caution
- Dec. 11 - Feb. 5, 2026: Shall we see higher? Mind the TOP of the trend channel!
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| Long-term Candle |
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3. Utility Index :
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| Short Candle |
Chart Comments |
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- June 9, 2014: markets will increase as long as they PRINT MONEY!
- Feb 19 - May 18, 2015: bull run
- Jan 16, 2016: NEW BUY SIGNAL after positive backtest
- Jan 19, 2017: We will initiate an upleg as interest rates decline.
- Jan 10, 2018: Potential STOP LOSS = CAUTION
- Oct 5 - Feb 25, 2019: Resistant Utility Index = the bull market is alive.
- Jan 16, 2020: new bull leg. The Index is breaking out through the top of its Trending channel. This indicates we have acceleration, the ultimate bullish buy, Climax #5. This is because Central banks have decided on QE4.
- Apr 23, 2021: bouncing into the TOP of the Channel and overbought
- Jan. 8, 2022: Dangerously OVERBOUGHT
- May 25: The uptrend is still Bullish and intact.
- Nov. 8 - Dec. 15 - Feb. 5, 2023: a BEAR TREND!?
- Oct 22, 2023 - May 16, 2024: A bear trend.
- Aug.3: Breakout points to LOWER interest rates and a LOWER Dollar.
- Dec. 19: BULL TRAP - expect a correction in Q1 of 2025.
- Apr. 1, 2025: running into resistance + DOUBLE TOP in formation.
- May 4 - July 4: Triple Top formation = CAUTION.
- Aug. 11: BREAKOUT = HIGHER, we shall see.
- Oct. 15: A Breakout we had...100% sure.
- Nov. 19 - Dec. 11: higher we shall go.
- Jan. 24 - Feb. 6, 2026: Sidewards...
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| Long Candle |
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4. Composite Index:
| Composite Index |
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Bullish Target |
28,000
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COMPQ in Gold: downtrend
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| Resistance |
24,000 |
| Support |
22,000 |
| Bearish Target |
18,000
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| Technical Pattern |
Top of channel. Mind the BEAR TREND on the PF to the right->>> |
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| Short Term Candle |
Market Comment |
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- Oct 18, 2018: The 200-day M.Average indicates Leg#5 is not over.
- Dec 28 - Jan 23, 2019: Backtest - Mind the BEARISH constellation
- Jan 8 - Jan 28, 2020: A dangerous TOP it is.
- Nov 19 - Jan 14, 2021: The elections are over! - Our PF chart indicates it's a SELL! [sell-signal valid until the end of Feb 2021]
- Jan. 22 - Feb. 15, 2022: Breakdown and correction.
- Oct. 26 - Dec. 1: expect higher FIAT STOCK MARKETS
- Jan. 12, 2023: Overbought, but still Bullish!
- May 2: But upward we shall go... hyperinflation mode!
- June 23: A BREAKOUT—Assuming central banks continue to print massive amounts of money (and they have no choice), the stock markets will continue to soar in a Venezuelan, Argentinian, or Turkish style. You will be happy, but you will have nothing. This is "Nominal Confusion"!
- Dec. 19 - Mar. 3, 2025: expect a correction lasting in Q1 of 2025.
- April 8: End of the ABC correction, also known as the backtest...expect higher returns in the coming months.
- May 4: Note that the Bull trend is intact.
- June 8: Technically, the COMPQ is preparing to move higher.
- Oct. 15: The US government started buying American stocks.
- Nov. 19 - Dec. 11: expect higher!
- Jan. 24, 2026: consolidating...
- Feb. 5: oversold - expect higher.
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| Long Term Candle |
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5. Dow Jones Transportation index
| Dow Jones Transportation Index |
| Bullish Objective |
18,800 |
Resistance
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16,800 |
Hard Support - Stop
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14,800
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| Bearish Objective |
11,200
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| Technical pattern |
BREAKOUT & BULL RUN.
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| Short candle |
Chart comment |
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- Feb 1, 2016: Short-term bullish
- Jan 8, 2017: Resistance of the All-Time High.
- Jan 9, 2018: Buy Climax?= DANGER...see TARGET on PF chart.
- Dec 28 - Jan 22, 2019: Note the bearish wedge and four black crows
- Jan 6 - Jan 28, 2020: I have vertigo.
- Jan 8 - Mar 5, 2021: Higher index with LOWER VOLUME = Bearish!
- Jan. 22 - Feb. 23, 2022: YES. A blow-off it was, and DOWN we go!
- Dec. 1 - Jan. 11, 2023: still dangerously OVERBOUGHT.
- Nov. 2: Technically a BUY!
- Jan. 14 - May 17, 2024: We expect a CORRECTION.
- Sep. 10: higher, we shall see.
- Oct. 16 - Nov. 16: running into resistance.
- Dec. 19 - Mar. 3, 2025: Bull Trap - expect a correction.
- Apr. 1: Note the top of the PF channel and ongoing correction.
- July 4: running into resistance.
- Aug. 13: preparing for higher -expect a fresh breakout soon.
- Oct. 15: The US government started buying American stocks.
- Nov. 19: Sideward.
- Dec. 11 - Jan. 24 - Feb. 6, 2026: Breakout and Bull Run!
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| Long candle |
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We have robust stock markets—GREAT in times of recession—, but this is a normal consequence of money printing (QE). The markets will continue to rise as long as new money is created, provided there are no accidents.
CENTRAL BANKS BUY SHARES...and print more money to buy more shares (Japan, Canada, Australia, FED, ECB)!
Stock Markets Will Rise as Central Banks Print Fiat Money in a Zimbabwe Style...
We expect HIGHER STOCK MARKETS! Mind the LT Double Top breakouts and positive Backtests!
- Venezuela, here we are. It is essential to understand that the bullish action indicates a HYPERINFLATION situation, and stock markets will rise A LOT MORE. This will become clear once the Stock market indexes break loose from the actual resistance levels and we have positive backtests.
- Stay away from red-flagged markets - some will continue to bottom; for others, we will see a breakdown each time the local Bond market crashes. Get out of the European stock markets in distress: Greece, Portugal, Italy, Spain, and France. However, remember that hyperinflation and financial crises can reverse the trend of all stock markets overnight.
- Some stock markets are a no-go due to currency risk. Ex. Japan, South Africa...
- Green-colored charts indicate bull trends, red indicates bear trends, white indicates sideward movement, and orange indicates danger or caution.
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| UK FTSE |
Swiss SMI |
German DAX |
SA-Dow |
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| Bull Trend - £ is WEAK! |
Bull Trend |
Bull Trend
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Rand is VERY WEAK! Bullish Head & Shoulders
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| VENEZUELA, HERE WE COME... |
| Shanghai index |
Japan
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Spanish IBEX |
Austrian ATX |
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Strong Yuan
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Nominal Confusion Trap: Yen is VERY WEAK!
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Bull Trend
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Bull Trend
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| VENEZUELA, HERE WE COME... |
| World Index |
Australia |
Portugal Dow |
French CAC |
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| Bull Trend |
Bull Trend |
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Bull Trend |
| Russia |
Brazil |
Greece |
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| VENEZUELA, HERE WE COME... |
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Click here to see
How BAD reality
is when expressed
in REAL MONEY |
| Strong Ruble |
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No Drachma to devalue = crashing Greek assets. |
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| VENEZUELA, HERE WE COME... |
| Canada Dow |
Belgium Dow |
Dutch AEX |
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Click here to see what the FIAT reality will be. |
| Bull Trend |
Bull Trend |
Bull Trend |
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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 zeros the stock market indexes have means ABSOLUTELY NOTHING. Even when the 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, amid COVID-19, Central Banks are creating money out of thin air at an exponential rate, propelling stock markets into hyperinflationary territory. 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 Fool's Gold and continue investing in stocks.
Uncertainty will grow over the coming months until the Hyperinflationary 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 much better. Stock markets in those countries where more TAXATION is expected (e.g., Belgium and France) and those countries facing severe trouble (Greece, Italy, Portugal, etc.) will underperform. What is happening in South Africa (JSE) is an example of what is expected from other stock market indexes! [There are Capital controls in South Africa]
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Dow in Gold- CAUTION- BEARISH TREND
Expect to see the Dow and Gold at the same level: the higher the Dow, the higher the Gold price.
From now on, gold will continue to outperform the Dow and stocks. Mind the bearish wedge; it has been activated, which means stock markets will come down, while the gold and silver sectors will rise.
 March 17 - Jan. 25, 2026: 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...
- There is no doubt that equities are a lot safer than Bonds. We have opened a recession-proof section for those seeking income and stability who refuse to allocate a significant portion of their savings to the Gold/Silver and Energy sectors. All shares in that section are costly now!
- Markets are NEVER wrong. The trick is to be patient and listen to what they say.
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- The Dow Jones is already indicating that the USA is heading for HYPERINFLATION. (Dec 2013)
- Markets are a WARNING for what is to come: high volatility as insecurity grows!
- QE 4 in the EU & the USA has broken the negative trend of most Western Stock markets.
- QE will have a bullish impact on most European Stock Markets, as it may help avoid further weakness.
- Best-case scenario: Stock markets are poised to rise, expressed in Nominal terms only, due to the Hyperinflationary depression. But we may see some corrections BEFORE this happens.
- If and when the USA's credit rating is lowered, we expect a crisis in the Bond market, which will temporarily affect the Stock markets. A crashing Bond market, a weaker and/or crashing Fiat currency, a weaker stock market, and stronger Gold. This is what the citizens of a country will see each time the system starts to fail...until Hyperinflation sets in.
- When governments fail, intelligent investors sell their Bonds and buy Real Assets or stocks in a safer country.
- If something goes wrong, the Chinese and Indian markets won't withstand a hostile market environment in the West. After all, they are subject to the HOCGood (high-order capital goods) rule.
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Once capital controls are enforced, the stock market will behave similarly to the SA-Dow.
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The least we can expect is sideways bullish action until Hyperinflation breaks out and the index soars...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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The Fiat Money BULLISH potential is 50% to 500%—use Trailing Stops and buy during Corrections and Panic Situations!
Note that gold and stocks can both rise simultaneously. Only the Gold miners will rise faster.
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