In our last post, we introduced some rather advanced material. It pertained to the intricate workings of financial cycles, and how they can be somewhat amended or interfered with by Man.
Although we do not expect everyone to accept or understand everything as stated; one should at least admit a very important fact.
The weapons of financial manipulation being used today, primarily by Central Banks and Governments, including stimulus, bail-outs, sub-par zero interest rates, and quantitative easing to mention a few; have been the largest concerted monetary intervention in history.
Man has spent trillions (some say wasted trillions) to intervene and control entire economies and the related capital markets.
Recently we pointed out to out to our paid subscribers, that in our analytical viewpoint, KRTT regards this as a hidden war between Man and Nature to determine exactly who will control money and economies.
Although Man with such massive and determined efforts may delay the inevitable, over the longer term in our KRTT perspective and education, we would strongly bet that Nature, Science, and Natural Law Cycles will prevail.
In a nutshell Man can delay, but not prevent or negate Nature's Financial Cycles.
Further, the financial markets with such huge intervention and manipulation attempts become more volatile, more dangerous, and harder to predict with constant man-made intrusions into otherwise freely traded markets.
Nonetheless the financial engineering methods of trends and cycles as taught by KRTT, remain incredibly potent in achieving a higher understanding of events, and seeing into the financial future.
We have included two graphic exhibits this evening.
The first depicts the net new highs of the NYSE. It shows a considerable negative divergence (a warning), and gives strong evidence of a serious degradation in the number of leadership stocks that are participating in the recent rally.
Another way of saying this, is that the breadth of the market is deteriorating and poor.
Our second chart, is a chart of the SP500 Index using 2 hour bars.
An astute inspection of the SP500 chart suggests that technical indicators are in the process of being repaired, potentially for one more rally.
However, the great W. D. Gann was the first market wizard of Wall Street that taught - TIME is the MASTER CONTROL FACTOR.
Thousands of hours of KRTT research conducted over many years has absolutely confirmed that Gann was correct in his assertion about time and cycles.
In summary, our latest KRTT TIME and CYCLE analysis for the SP 500, now suggests that the minor Elliott Wave (EW) 3 top that we have been looking for, is being delayed - but just slightly.
We have placed our calculated current time target for the EW 3 cycle termination on the chart in our usual mark-up comments.
We are suggesting that there is a little more room for upside, but due to the nature of the ongoing negative evidence, we also suggest stops be placed on all individual trades and investments. This is far more important if one is not a strong cycle and technical analyst. Stops are also impacted by the accumulated profit or potential of an investor to take on risk.
NOTE - cycles are very unique (with some similarities)to each investment
Sincerely,
James Kelly Sr.,
Editor in Chief, BBTL Blog
www.KRTT.com
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