Stock Collapse or Correction?

Originally posted by surrealist
Well the market grew because of great economic fundamentals, you know? It is now falling because of deteriorating funda..... wait!

Oh that's right, it's falling because of Fed Reserve announcing it will wind down its monetary policy and end it next year.

Something is

with this picture.

Personally I just think the market is adjusting to the Fed Reserve announcement, ...

Yes the gold and equity markets got clobbered by ~2%...
by the Fed announcement of soon to come 'tapering' of the $85 Bn a month in MBS buying and UST buying all of which gets money injected into the banks & financial entities who in turn inflate the stock markets


imo... by all rights the DOW should retract another 1,000 points at least... but its not yet time for the masses to rebalance their portfolios back to Bonds & out of Equities and Commodities (yet)
So that 353 point drop in the market will be about the worst of this correction...as the money changers manipulate things even more

all this is because the Federal Reserve money machine has installed itself as the replacement for the former 'Middle Class' investor sector...and the fear that the Fed will lessen its role as the money generator will backlash itself and reinforce the the idea that the Fed is Now the permanent replacement for the now dismantled 'Middle Class' investor
there is the realization that the (fundamentally changed economy) service-economy in conjunction with ObamaCare nationalized medicine will not support a vigorous & dynamic economy with enough money creation or enough money velocity to support a inflated stock market


ERGO the Fed Reserve will leak info that the eventual 'tapering off' will be delayed into some future time probably when the present 'illusion of Recovery' statistics are shown to be mere accountants tricks and Obama faces Impeachment hearings



additional material: (a 3 minute read about the Wealth Effect)

www.zerohedge.com...

We are at a major crossroads...in the big picture we are making a Major Top and the target will be the 2009 lows (666 area S&P500). However, it is unclear from an Elliott Wave perspective if the top is in or if this is the final correction before the final top. My opinion is that the price high is in but that the orthodox wave count is incomplete (due to the corrective wave fr the 22 May high which is likely an "A" wave and this last drop the "C" of an ABC). The key will be whether or not we hold the 1530 area (SP). My expectation is that we will break it and then trace out a failed wave 5 up before the real collapse. Make no mistake tho we will be imploding before too long (after this top is either completed or confirmed) and may even go down to the 450 area before it is all over (first a major short covering rally from the 2009 lows).

Originally posted by CosmicCitizen
We are at a major crossroads...in the big picture we are making a Major Top and the target will be the 2009 lows (666 area S&P500). However, it is unclear from an Elliott Wave perspective if the top is in or if this is the final correction before the final top. My opinion is that the price high is in but that the orthodox wave count is incomplete (due to the corrective wave fr the 22 May high which is likely an "A" wave and this last drop the "C" of an ABC). The key will be whether or not we hold the 1530 area (SP). My expectation is that we will break it and then trace out a failed wave 5 up before the real collapse. Make no mistake tho we will be imploding before too long (after this top is either completed or confirmed) and may even go down to the 450 area before it is all over (first a major short covering rally from the 2009 lows).

edit on 22-6-2013 by CosmicCitizen because: (no reason given)

Your past studies and predictions based on market charts have been pretty accurate in the past. Good luck to you all in the future. Its nearly time to lock down the bunkers.

Wow.....The bet day is coming due already. It seemed like it was such a long time in the future when I first read about it. I had forgot all about it till you posted this thread I must be getting Alzheimer disease. I suppose the proper medicine for alzheimers would be either Weizen Heimer beer or Effinheimer beer. I should probably start treatment right away.