Monday, 31 December 2018

VIX (weekly)

The RSI of the VIX has posted a negative divergence. My interpretation is lower volatility ahead and some tangible equity market relief. However, the last occurrence of such a divergence led from the partial relief to a massive spike for the VIX during the Super Cycle collapse phase for the markets. 

The post 2009 S&P 500 chart indicates the overpricing effects on equities of ongoing mismanagement by an inadequate understanding of intervention consequences by the FED and Treasury interactive manipulations. The mismanaged withdrawal of the mismanaged creation of excessive liquidity may well be the precursor to the Grand Super Cycle.
Too many unsustainable wrongs never made any sustainable right.
As you sow etc.
Under Clinton, the banksters got themselves free from many necessary controls put in place by previous, wiser lawmakers and the perpetrators proceeded to implement their intended abuse of common sense and decency for the motive of self-enrichment (pure greed). There has been no appropriate action to restore those controls. It appears that the power game has seen an irreversible shift of power from the people to the indecently enriched at the hands of the misguided and myopic representatives of the people. Recent history has thereby created the beginning of the end of an era of civilization. The arrival of the Grand Super Cycle would appear totally appropriate.

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