Friday, January 16, 2015

Morning Charts 01/16/2015 SPX /es

"Don’t be the last one holding paper when chaos strikes. You may live to regret it."

This quote comes from the ZH post "If It’s Not A Hard Asset, It’s No Asset"I don't know how long you've been reading STB, but I'm positive at some time you have heard me discuss getting out and proper preparation. Let me simply remind you without going to deep into detail - take profits all the way out of the dollar into something that's tangible and have a plan for how and when to get the rest out. When this thing turns - everyone will want out at the same time and the gates have been closed. There, you have been warned, again. 

How many times have I also warned to get your cash out of the banks and into your home? Of course the government will quite literally view you as a terrorist for this act, but when capital controls come you don't want to get caught with your pants down. Bank runs will happen. One is happening in Greece right now. Even subtle forms of capital controls are happening - take the fast cash option at your ATM as an example - what used to be a simple push of a button to get $100 was reduced to $60 and recently my bank lowered this to $40. While you can still get your full amount, they are making it harder. 

Guns, ammo, water filter, generator, food, gold, silver - when this thing tuns you need the ability to fend for yourself and hold up for a while. 

On to the lie -

SNB fires still roaring and our economic data here at home continues to worsen. LS1 is doing a report on Chernobyl, and I could not help but draw parallels to the current financial crisis. Like this financial crisis, Chernobyl had a flawed design to begin with, was built cutting corners, the explosion was caused by ignorance and the aftermath speaks for its self. The consequences that will come from our financial leaders actions today will be far more devastating I believe. Is there a half-life for financial meltdown? 

SPX Daily- Double bottom, double diagonal support, lower BB, the 1988 s/r line and the 38% retracement - that's all good, but what do the indicators say? I've been trying to point out for some time that they were not ready and the evidence is clear - only one positive divergence exists (not that they need them for one of their patented V bottoms - which we're witnessing the second V failure in a row now) at this point where a DCB has potential. I've wanted the 1970's (minis got there this morning). If price gets to the 1972 low, then there is potential the divergences will exist and NT oversold conditions will be satisfied. 

I have also noted that if the 70 area fails, there is no support to 1910 then 1850. Remember- it falls much faster that it goes up (take your profits all the way out). There is a chance a giant HnS is forming with a neckline at either of those support areas. A last recovery from there to 2010 or so then the final collapse would be my preferred scenario here. The Fed needs to hang on here if they can. 

More to come below.

Have a good weekend.

GL and GB!

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