A Safe Bridge Over "Troubled Financial Waters"
How to Hold On To What You've Got
By Robert Jay
Tue, 17 Aug 2010 19:00:00 ET
Tue, 17 Aug 2010 19:00:00 ET
What IF we're headed toward another market crash?
What IF the economy is headed toward a deflationary depression?
We at Elliott Wave International urge you to prepare for the worse. And we believe holding cash is a great way to prepare. Cash will serve as a bridge over "troubled financial waters". And if the worse doesn't happen? Well, you will not have lost anything!
No matter what happens, you'll be financially safe. But IF financial seas become troubled again, you'll be in a great position to take advantage of investment opportunities once those seas settle down.
Yes, Robert Prechter says actual greenbacks will have an advantage even over T-bills. He explains in the January issue of the Elliott Wave Theorist:
"Treasury bill yields go negative when the demand for T-bills outstrips supply at a time when nominal interest rates are near zero. Many people have trouble understanding why investors would be willing to pay more than face value for a T-bill. The answer is that the word 'pay' is less than meets the eye in a credit-based monetary system. Nobody pays cash for T-bills. They pay with something potentially worth far less: a bank balance, which today is a very precarious IOU. Between 2010 and 2015, most banks will close, and few people who kept their money in banks will be able to buy T-bills. Those who have them already will have value. That's why some investors recently bid T-bills up past their face value.
"Now think about this: Negative yields make T-bills worth less than cash. In 2010, as deflation returns and accelerates, T-bill yields are likely to become quite significantly negative. Can you imagine a 5% negative yield on T-bills? I can. Rather than join that rush to lose money, a smart investor will instead convert his bank balances to greenback cash and keep it in safe places."
Where can you keep your wealth safe? If your first thought is the bank, keep in mind: Many banks will likely close during a deflationary depression, and the Federal Deposit Insurance Corporation may become overwhelmed.
THE VULCAN REPORT
Review of TLT - US Bonds 20yr+ ETF (TLT)
as of Thursday, August 19, 2010
Today's Price Action
Change 1.6300 (1.56%) prices closed higher than they opened. with strong Bids going into the close.This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are "low," it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area , the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
MARKET SENTIMENT
PulseScan Swing Vix
PulseScan: 42.83
Swing Vix: 41.83
The Market Pulse is positive since it is trading above its zero signal line.The PulseScan crossed above the Swing Vix creating a UP Trend Channel as of 8 period(s) ago. The Swing Vix is above 39. This is where it usually tops. The Swing Vix usually forms tops and bottoms before the underlying security.
A buy or sell signal is generated when the Swing Vix moves out of an overbought/oversold area.
*The last signal was a Over-Bought Sell 32 period(s) Ago.
The Swing Vix does not currently show any Failure Swings.The security price has set a new 14-period high while the Swing Vix has not. This is a bearish divergence. Since the PulseScan leads the market 3-5 days out we will wait to see if downside pressure develops.
*Since the last Swing Vix signal, TLT - US Bonds 20yr+ ETF's price has increased 6.45% , and has ranged from a high of 106.6100 to a low of 99.4700.
MOMENTUM
MARKET TREND - Currently the TREND is VERY-BULLISH - Heavy Accumulation- The UpTrend is still entact with prices holding above trendline support at- 96.9550.There is currently no trend reading at this time.
TREND STRENGTH - STRONG - Bullish Trend,
There is currently no trend strenght reading at this time.
TRENDLINE RETRACEMENT
The close is currently Above it's PulseWave Cycle TRENDLINE RETRACEMENT. - 96.9550
The close is currently Above it's Long Term TRENDLINE RETRACEMENT. - 95.8952
The close is currently Above it's Intermediate Term TRENDLINE RETRACEMENT. - 99.2928
The close is currently Above it's Short Term TRENDLINE RETRACEMENT. - 102.9738
INTRADAY PRICE PROJECTIONS
RESISTANCE 106.1667
SUPPORT 105.0833
WEEKLY PRICE PROJECTIONS
RESISTANCE 100.6100
SUPPORT 98.5600
MONTHLY PRICE PROJECTIONS
BULL MARKET UPTREND - (12-18mo) PRICE TARGET = 125.9200
Long term Trend Line resistance is currently at - 106.6100
Long term Trend Line support is currently at - 96.9550
BUBBLE PHASE 3 - (72mo+) (TULIP CRAZE CRASH IMMANENT) PRICE TARGET = 183.8500
BUBBLE PHASE 2 - (42-60mo) (MARKET FRENZY BUYING) PRICE TARGET = 164.5400
BUBBLE PHASE I - (24-36mo) PRICE TARGET = 145.2300
VOLATILITY
On 8/19/2010, TLT - US Bonds 20yr+ ETF closed above the upper band by 8.5%.
IN PLAY - (PANDORA'S LITTLE BLACK BOX)
LONG Signals :
Bullish Momentum Strengthening (Phase I).
LONG ENTRY- 106.7085
Profit Target 113.6833
Stop Loss 104.5415
SHORT Signals :
WARNING - Inside Day / Bullish Replacement pull back from previous high (Possible Breakdown below)
SHORT ENTRY- 104.5415
Profit Target 99.8933
Stop Loss 106.7085
Risk Disclosure
General Advice Disclosure: Please note that the advice contained herein is general advice and is for the purposes of education only. The risk of loss in trading futures contracts, commodity options, stocks, stock options and forex currencies can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You are reminded that past performance is no guarantee or reliable indication of future results. It has not been prepared taking into account your particular investment objectives, financial situation and particular needs.You should therefore assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs. You should do this before making an investment decision based on this general advice. You can either make the assessment yourself or seek the help of a professional adviser. This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents.
For Related news and other stories please visit - http://www.wideawakenews.com/
For Related videos on our Youtube channel please visit -http://www.youtube.com/user/pulsescan72
Be Sure to register for faster updates and commentaries at -
BLOG 1: - http://pulsescan.blogspot.com/
BLOG 2: - http://seekingalpha.com/instablog/466159-pulsescan72/
BULLS make money... BEARS make money.... PIGS get slaughtered!
"TAKE WHAT YOU CAN .........GIVE NOTHING BACK"!!
General Advice Disclosure: Please note that the advice contained herein is general advice and is for the purposes of education only. The risk of loss in trading futures contracts, commodity options, stocks, stock options and forex currencies can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You are reminded that past performance is no guarantee or reliable indication of future results. It has not been prepared taking into account your particular investment objectives, financial situation and particular needs.You should therefore assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs. You should do this before making an investment decision based on this general advice. You can either make the assessment yourself or seek the help of a professional adviser. This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents.
For Related news and other stories please visit - http://www.wideawakenews.com/
For Related videos on our Youtube channel please visit -http://www.youtube.com/user/pulsescan72
Be Sure to register for faster updates and commentaries at -
BLOG 1: - http://pulsescan.blogspot.com/
BLOG 2: - http://seekingalpha.com/instablog/466159-pulsescan72/
BULLS make money... BEARS make money.... PIGS get slaughtered!
"TAKE WHAT YOU CAN .........GIVE NOTHING BACK"!!
No comments:
Post a Comment