Hello traders and investors,
FRIDAY - IMPORTANT UP DAY
The bellwether S&P 500 Index made a highly significant up move on Friday.
To begin our update, yesterday's SP500 close was a new high since the summer 2010 correction. Higher highs and higher lows
confirm a bullish trend. Although markets are dynamic and new information comes daily that must be assessed, our analysis of the bullish Friday September 24th, 2010, up move allowed KRTT to affirm our bullish outlook.
Those following KRTT forecasts, should know that we have been medium-term bullish since we correctly forecast a significant summertime low in early July. Throughout the May and June summer market correction, we had also labeled the summer corrective down move - as an Elliott Wave (EW) Four (flat). Thus, we are now within a wave five up -
in progress. We have witnessed several public EW counts during the summertime (including Robert Prechter at EWI who we respect) and recently that we believed were in err. Technically, the large upward thrust on Friday, also tends to serve as continuing confirmation of our viewpoint, that we are indeed within an EW wave five up.
This logical bullish perspective of an Elliott Wave 5 in progress, in advance of USA mid-term elections could not be much better, convenient,
or suspicious.
PPT Action, Hint about Natural Law and KRTT Upset Mechanism Theory ©
In fact, the large opening up gap on Friday morning (gaps are significant if properly understood), the single day of the trading week, that institutions usually do not trade or trade lightly in, is suspicious of an action by the infamous plunge-protection-team (PPT). If one wanted to surge a market up or down, the best times are at the open, the close, and on Fridays or Monday mornings.
The housing and retail sales data, cited immediately by Wall Street spin doctors as cause for a strong Friday rally, are weak in our intellectual perspective. We also strongly oppose, and do not support a notion that financial markets operate on financial news and economics, but rather we endorse a complex view of Natural Law (see blog pages) and other KRTT proprietary hypothesis. By example, the following as relating to upset mechanism***, is one such KRTT hypothesis as an excellent sample.
Of course, as far a economics and finance (The General Theory - Keynes) Man too has learned the ability to manipulate, upset, or distort the Natural Cycles. These interventions are scientifically termed by KRTT, as Man-Made Upset Mechanisms***. In essence, the financial markets will always summarize as being dictated by both Nature and Nurture*** (Nurture- Mans hereditary learned ability to impact Nature). When conflict occurs between the two, nature will always win out
in the end, since frankly, nature is far more dominant and powerful.
Although, technically Friday could have been a logical commencement of a short-term downward cycle, this particular natural law cycle involved, KRTT now sees as essentially
inverted***. Without herein fully teaching or disclosing how we have come to recognize inversions, we simply say they do exist under such KRTT Upset Mechanism hypothesis, and the theory involved and discovery process was quite complicated. Yet, in the end after reviewing the particulars was actually highly logical. We believe even the great W.D. Gann would be proud of our KRTT Cycle Upset Mechanism*** as a valid and valuable addition to his Natural Law discovery and works.
Thus, all budding cycle or Natural Law analysts, even such as those experts at the famous Foundation for the Study of Cycles, will need to eventually incorporate such
inversion theory based on our KRTT Man Made Upset Mechanism Observations*** into their cycle models, if they are to become truly accurate.
Such KRTT theory***, in our viewpoint is indeed very high-impact, in that it changes both the classic Wall and Bay Street perspectives and even the Natural Law perspective about how financial markets really operate. What we are saying, is there is room for both to work and interact.
Our Upset Mechanism discovery and theory also explains via emerging science, why after too much intervention or manipulation by Man himself, (i.e. sub-par interest rates by Central Bankers for too long) financial crashes or even lasting recessions occur. These crashes, are in essence, a summarizing way of essentially Nature putting back into proper order, the proper natural cycle as it was meant to be. Finally this is an extremely important endorsement for laissez-faire economics.
***
Should you wish to use, quote, write about or in any way explain or discuss our herein disclosed theory as written, we ask that you please protect our intellectual property rights and ensure that you apply recognition for such theory to Kelly Research Training & Technology (www.KRTT.com) until such time as KRTT publishes such theory, and other material in E-book format. This book will eventually be sold over the internet for a reasonable cost via our web site. As to possible PPT intervention yesterday, of course this will never be officially confirmed. After all the FED has never even been officially audited or held accountable to anyone or any government body. Yet PPT intervention in advance of and to create a bullish stability before mid-term USA elections is now currently highly logical in our viewpoint. About the last thing Wall Street, Bernanke, or President Obama wants or needs right now, is a greater surge in the USA TEA party.
Also contributing in our view, is the fact that President Obama has done little to truly change Wall Street or the massive greed, low ethics, and the secrecy by investment bankers whom are already busy finding new ways to get around the few rules as imposed. What was once feared by Wall Street is now joked about. In essence, it is better and far easier for Wall Street, the FED and greedy investment bankers to deal with the devil they know, especially when that devil
is ineffective. In political contrast, the Tea Party movement which is gaining momentum on main street America, represents the most liberal and even radical of new-age thinkers in the USA. The TEA party is a massive endorsement for change, and even aggressive Republicans are considering using their logic.
TEA party members hate the Wall Street and bank bailouts and suspect, as they rightly should, the immoral ethics and self-serving leadership at banks and Wall Street investment banks. Worse, they dislike any large government that is extremely wasteful, any governments imposing more taxes, and especially governments that lie or tax the poor to make rich - richer, and yet seemingly secretly act in their own self-interests, and all those in public or serving society whom act unfairly. The Tea Party thus represents a very real threat to old school bankers, brokers, and politicians that think they can get away with murder, or excessive
salary and deceit (figure of speech). Any bailouts that were not distributed to or which benefited all citizens is a wrongful and suspect act to aid a select few, at the cost of others. If those so aided were incompetent, immoral, educated, or rich, it is a far greater injustice. So in essence, the Tea Party in many ways represents true libertarians as a growing American idea. The implications for ushering in much needed change, give the writer a glimmer of hope and light, in the very dark repressive ways of current government affairs - even as a Canadian observer.
The Tea Party would also logically support the all important Audit the Fed movement, initiated by perhaps the most intelligent leader in all of the USA;
Ron Paul. Moreover, they might even demand more and better answers to the financial meltdown and ultimately discover the real truth that Central Bankers and their sub-par interest rates encouraged the massive speculation and leverage and very much caused (amongst other aspects not mentioned) the financial meltdown. These reasons and others ensure that the last thing that helicopter Ben Bernanke, The FED, Wall Street, or bankers would desire right now. We do not expect the TEA party to get a great deal of backing by big business, bankers or Wall Street.
SHORT-TERM - TECHNICAL TREND REMAINS BULLISH
The market action on Friday, also bodes very well for more short-term (ST) trending action up. On September 01, 2010, KRTT went officially bullish in ST posture. To date, that forecast has been spot on. Essentially, this serves notice that we affirm that view based on Friday's bullish market action and forensic clues that we decipher on an ongoing basis.
In our recent KRTT paid updates, our clients have further been shown
how and why the key
1130 price level for the SP500 is essentially an extremely important level. Essentially, one can think of it as an important line in the sand. The S&P cut 1130 in an upward thrust on Friday like a hot knife cuts through butter.
As long as the SP500 can stay above the key 1130 level, at present, KRTT will remain bullish - both short and medium term. We naturally reserve the right to change our minds, since an open mind is a most important and effective trait to a professional analyst or trader. KRTT constantly teaches and endorses an open mind as we professionally coach others.
Playing on our readership here and their intellectual curiosity (for those not familiar) about Natural Law, our paid KRTT clients have also been recently shown using three very different Natural Law concepts why November 21, 2010 is a fairly important cycle date calculated by KRTT that we will watch in the future.
A 30 minute chart is graphically posted to allow readership to witness the new science of professional technical analysis, completed by KRTT as a specialist for our paid clients. We are pleased and happy to offer it here and educate in limited edition for no charge to our followers to aid their own financial knowledge.
We also must say, this blog is highly experimental for KRTT. If you like what you see here, then may we suggest that you follow our blog and even tell your friends. We are still early in the development or experimental stages and have not yet promoted this blog in search engines.
Future content will be very dependent on our close readership and number of followers. We do have some exciting material planned assuming the proper support.
In our recent paid Real Time Update, KRTT clients were also shown three typical equities that KRTT has officially endorsed as strong BUY recommendations. Two of the three stocks mentioned just last Thursday surged over 10% in price yesterday, in a single day, and verified key or important breakouts.
Better yet, all three of the stocks KRTT recommended in our last paid update, are in major
long-term cyclical bottoms with considerable upside potential.
In fact, the opportunity was so great in our KRTT viewpoint, we even termed the theme for that recent update; "Who wants to be a Millionaire?" Was that merely KRTT Irrational Exuberance, our ego, or was it just that we at KRTT are savvier in our understanding and forecasting of the financial markets. That will ultimately be for you to judge.
The best investment anyone can make is in gaining a sound financial education, but whom you choose to act as your teacher will make a major difference. We believe you should aim in the right direction - or, aim at KRTT. (PS - amateurs as found so easily for free over the internet, do not usually do a good job in our experience) In contrast, KRTT has worked for decades including as a financial professional with Bay and Wall Street firms, and now acted as a private advisory and financial specialist. As we say, we have experience on both sides of the trading desk giving us a unique perspective about the investment truth and how the stock markets
really work. KRTT Training for the Human Race.
Trade the trend and Natural Law
and not the so called financial gurus James Kelly Sr.,
Editor in Chief
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