Extracted in part from April 15, 2015, market Update
Technical Analysis Indicators
like all mechanical tools have limited lifespans. These two key Technical analysis indicators no longer work; these indicators used to work marvellously and when combined with other Technical analysis indicators, could enable one to determine the bottom and the top in a market. Sadly, this is no longer the case.
In the past, one could use the BDI (Baltic Dry Index) to gauge where the markets were heading, as the BDI usually topped out or bottomed out well in advance of the general markets. The BDI was one of a select few Technical analysis indicators that produced results on a consistent basis. If the BDI was putting in new highs, it was a good bet that the markets would follow suit and vice versa. This is no longer the case. The time-tested BDI that worked so well over the decades, but now it’s probably not even good enough to use as Toilet paper. It continues to trade to new lows and the market continues to spit on it and soar to new highs. This is a good way to prove market manipulation in action, but other than that, for now, it’s totally useless. One cannot fret over this; one has to adapt and this brings one of the most important sayings at the Tactical Investor to mind ” adapt or die”.
Copper and the Baltic Dry Index; two Technical analysis indicators that clearly prove the markets are being manipulated
Copper used to be such an accurate predictor of where the economy was headed. In fact, it was one of the better economic Technical analysis indicators, but alas it too has to be thrown into the trash can. The Markets soar to new highs and copper plunged to new lows. The master of deception must be laughing their butts off when they see experts panicking and writing long articles opining about how the world is going to end because these two Time-tested indicators are dropping while the markets soar. The reality is that those experts will probably end up in the madhouse first before their scenarios come to pass.
We are now in the in the maximum overdrive phase of the global currency wars; none of the old laws or rules applies or holds true anymore. So whatever you held dear and close to your heart (regarding logic and rules as it applies to the markets), please do yourself a favour, find a bin and dump these ideas or flush them down the toilet.
They are useless and can no longer help you. We are in a new paradigm in every sense of the word. Remember this when you feel confused: adapt or die; there is no middle ground. Adapting is easy, dump the old and embrace the new, even if you do not understand it. In time, you will, but to understand the new, the old must go. For the untrained, it will appear like a free for all fight is taking place, but nothing could be further from the truth. This is all planned and being conducted with cold-blooded precision; welcome to my lair said the spider to the daft fly.
Two Technical analysis indicators no longer work; it is sad to see these two once mighty indicators relegated to the dustbin of time. Perhaps one day when the manipulation factor is reduced or removed these indicators might make a comeback. Now you might be tempted to formulate this question; why don’t these tools work anymore? The answer is more than obvious; we are not dealing with reality. We are living in a land of dreams and drugs. The surreal is now real and the real is surreal. So everything is upside down. The masses believe things are okay even though they feel that it’s not; rather than trust their senses they chose to rely on the data the MOD puts out.
As a trend player, you must take note of that for in any given situation, it’s not the truth that matters or wins, it’s what people perceive the truth to be that matters. That is why when you argue with anyone; the first question to ask yourself should be “what does that fruit fly in front of me perceive”. Once you know what he or she perceives to be the truth, you can go about planning a course of action that will lead to a favourable outcome. People only see what they want to see, and not what they should see or what is really there.
If you understand that, you will understand why the Masters of Deception have become so overt and arrogant in their actions. To be on top of any situation, you need to see reality from the eyes of your opponent, and in most cases, he/she sees something totally different from you. The clue comes from their answer. So pay attention to their answers, dreamers love to sing, so listen to their song and you will know everything you need to know. Economists, like to take simple concepts and make the complex so that they can hide their ignorance.
You will rarely find economists using simple language; if they did they would be exposed immediately. Usually, a complex problem is only complex because someone decided not to think; complex problems usually are the most simple to solve; complexities usually arise because idiots are in charge, and they lack the ability to see beyond their nose. Hence, everything appears to be complex.
Now take a look at this video with a grain of salt or maybe a Jar
Other Articles of Interest:
Is The U.S.A Still A Super Power? (Oct 25)
China; A Great Time To Buy (Oct 25)
Dollar Bull Still In Play (Oct 24)
Gold Approaching Critical Juncture (Sept 30)
A New Era In Trading (Jan 25, 2014)
Two Key Indicators No Longer Work
Two Key Indicators No Longer Work