DEFLATIONary RECESSION
Posted by MC on Nov 18, 2008
The way all commods are tanking with the paper markets and USD is strong points to no fear of inflation in the market and backs my thought that we are in a deflationary period. They could “print” tons more money/debt and still not cause real inflation because so much of our perceived money supply has been lost on housing values and investments unwinding.
This tank job was catastrophic for those near retirement but for the younger folks like myself this is what will likely secure my not needing to eat dog food in my later years. 
OK…now you guys are gonna hate me
Posted by MC on Oct 1, 2008
It’s a disturbing lopsided image to me how we rose so exponentially with no retrace. From the breakout in the early 80’s there has been no real looking back which is not healthy. We had Y2K which was a slight balance period and was treated like the end of the world when it was just a minor blip in the big picture. I almost drew a mid channel line in but it really would blur the reality of this market. And the longer they prop us up here the further and harder the fall will eventually be IMO.
Def keep in mind that this years candle isn’t said and done with. So a yearly chart now is a tad premature. But at some point the market has to come down and probe the channel, it can’t go up exponentially forever fellas. If they prop it up and continue the bubble look to Y2K levels for support and if those fail we will have a Hinderburg type of market bursting.
Not doom n’ gloom, well maybe it is…sort of. If we see coiling or rejection candles at the top of this channel or a break of Y2K lows we know we are in for deep $hit. There will be a massive bear cycle, some estimate it to be 10-12 years long. So we won’t just drop to the base of the channel overnight but at some point I do imagine price action will drive it there.
Good luck boys n’ girls. 
