Ponzi World (Over 3 Billion NOT Served)

The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.

Friday, July 24, 2015

Third Wave Liquidation Phase

EWI Short-term Update: July 22, 2015:

"[Bottom Line] Stocks remain in the final throes of a fifth wave rally. When the structure of the advance is complete, a bear market will begin."

I will go out on a limb and say that a "bear market" has already begun...

S&P with average stock

My wave count doesn't allow for a new high. The top was in May with two subsequent retracements. The Dow first reached this level over 8 months ago, and is now negative on the year. When acceleration is at hand, it's best not to get too fancy with the voodoo...

Dow:

Even the Biotech Casino took a hit this week
Everything else got mauled

NYSE Highs-Lows:

New lows

As expected, this next leg down is led by Oil stocks and Emerging Markets, which are in full liquidation mode

Emerging Market Credit