Yves Issues a MAJOR buy signal!

Under the bright full moon, the contrast of pundit opinions gets sharper.  Today's STU is convinced we are in a third wave down of several degrees - their long awaited 3 of 3 of 3.  Neely is half short, and frets over volatility this week before going all in - his wave (D) correcting since Jul15 may not quite be finished, so he is still on the fence. Yves in stark contrast has a big buy signal from his Liquidity Index, due to the huge drop in oil this morning.  More below the fold. 

A crisis of liquidity not of stocks!
Blaming Reaganomics ………

We issue today the 15^th September a Buy signal.We had hoped for a retest of 11,000 and predicted such an event on Taking Stock, Bloomberg TV on the 25^th of July.

The thesis was for another financial accident to hit and generate enough gloom to finally move on to better days ahead.

I believe we are in one of the greatest shift mankind will experience in its history.  Clean technology and climate change issues are going to create enormous wealth.

From Roosevelt's New Deal came a period of stability for the financial system.  It was undone by Ronald Reagan promoting less government interference and has created what you see today.  Perhaps taking from past episode one should question the validity of bailing out unruly players at the detriment of the economy and the greenback. 

Rates in fact should go higher to raise the dollar, lower oil and maintain the integrity of the system.  Cutting taxes on savings will promote a larger capital base and lower mortgage rates.  Raising taxes on consumption should offset that cut.

Investors looking to the past have good reasons to believe that good things are ahead!

Yves Lamoureux, Blackmont Capital Inc.

Disclaimer: opinions and projections contained are of the guestblog author and may not represent the views of Yelnick, Blackmont Capital (BCI) or any other organization. The information contained herein is for information purposes only and this report is not to be construed as an offer to buy or sell any securities. Neither Yelnick, BCI nor the author accepts any liability whatsoever for any loss arising from use of this report or its content. The comments and opinions expressed in this letter are the result of work done by Yves Lamoureux. They may differ from the opinion of Blackmont Capital Inc. ("BCI") and should not be considered as representative of BCI, belief, opinion, or recommendations. The statements and statistics contained herein have been prepared by sources we believe to be reliable but we cannot represent that they are complete and accurate. This material is published for general information only. BCI assumes no liability for financial decisions based on this information. Readers should obtain professional advice before applying any ideas mentioned to their own personal situation to ensure their individual circumstances have been properly considered.  BCI is an independently owned subsidiary of CI Financial Income Fund. CI Financial is a Canadian owned diversified wealth management firm

 

Comments

[Upstart]

Question guys: In a triple zigzag, can the second X-wave either go into the territory of the first X-wave or not go into it? Either one occurs? Thanks.

[Upstart]

Paul, I read Carl Futia's blog often, and he said this morning that December gold could make it to 935, but that would be it. He still expects a drop to 700.

[Eventhorizon]

Hello, folks, long time no post - but I have been following along.

Man this volatility is making me sick. Now they want to ban short-selling?

TPTB are doing a masterful job of floating rumors to panic the shorts - today's bailout requires congressional approval, it might take months. This anti-short-selling thing may turn out to be as little as reinstating the up-tick rule. No way will Wall Street allow shorting to be banned - how the hell would your prop desk function?

And philosophically speaking, if a short is not allowed to borrow stock and exchange it for cash, then a long should not be allowed to borrow cash and exchange it for stock. In the long run this will only drive market participation down.

I still have some open short positions that will gap right through my stops in the a.m. this sucks.

[Fork_Master_Serg]

ban short-selling is good - no more short squeeze for bears - we just go down, rest a bit, go down, rest, repeat :)

[Eventhorizon]

So how can anyone profit from this if they can't short? Don't say options because none would write any if they can't hedge their position by shorting.

No shorting => no day-trading => no liquidity.

Isn;t liquidity in markets the root of all these problems.

What about futures contracts? No one can go long unless someone else goes short. And how can anyone arbitrage between the futures market and the stock market? Isn't it arbitrage that keeps the two markets in synch?

There are so many problems with this proposal.

I think you were being ironic, but, really, this is ridiculous and every retail short is going to be scared silly.

[george]

i listened to robert pretcher on yorba.tv
he said we are in a large triange that started
in 1999. the triangle should last 90 years.
he looks for the price of the dow industrials
to equal the price of gold at some time during
the triangle.
he says based on the past couple of down days
having a high ratio of stocks down to stocks
up as evidence confirming we are in 3 of 3 down.
george

[Ray]

Prechter has no credibility for me because he said if gold exceeded blah blah level it would negate his deflation prediction. Gold has risen through those levels over and over again and he just wriggles and writhes and rationalizes.

Anyway, the authorities will print money pronto if they have to. We'll see extreme inflation before we see bank runs.

[min]

Ray:

Prechter has credibility mainly with newby amateur market dabblers or ultra sophisticated traders that know how to profitably use him as a contrary indicator (a small crowd). You are not alone!

He is a one man financial wrecking machine. Those that have heeded his advise and actually tried to do something following his calls are in the poor house and for the most part non-existent.

Any long term followers still around are not market traders but most likely market spectators that like his doom and gloom drone and secretly enjoy living in fear.

His scenario may, one day, come to pass, but look at the fantastically long time he has been wrong so far and all the missed opportunities. Is that indicative of superior market timing skill or of someone that has discovered there is a large following for a doom and gloom story of whatever flavor?

Prechter is a marketing forecasting dumb-ass, but he is a clever marketer —this is his real meal ticket.

[Wave Rust]

See my 1st page comment

look for the reverse down by noon today and buy that
could retrace most of the whole rally
good position trade, may last many weeks
short vix, long banks, long spz, ymz, nqz

good luck
good trading to all

[min]

My NDX long just 5x in value? Are shitting me? I'm outta here!!

P.S. Thanks Bob

[superbull]

so much for the bearmarket - it is over

[min]

Well, we can say it is on hold for a couple of weeks or so. Let's nor get too comfortable just yet, lest we end up bear-b-qued like the recent casualties.

[min]

Nothing wrong with making money in both directions, right?