DOW MEGAPHONE TOPPING PATTERN

*click to enlarge

This formation is still in play. The adjustment process and deleveraging from decades of credit bubble activity has been delayed by historic Fed actions, and now world CB's.

Delaying is not fixing.


http://www.prudentbear.com/2013/08/weak-links-and-transmission-mechanisms.html
"Fed QE notwithstanding, I believe the market backdrop today implies an important tightening of financial conditions going forward. Policy measures – including boosting QE – do have the potential to delay this tightening, although with the cost of only exacerbating the wide gulf that has developed between inflated global securities prices and deteriorating economic prospects."

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"SIGNS OF A TOP" MARGIN DEBT FOLLOW UP

http://www.mauldineconomics.com/frontlinethoughts/signs-of-the-top

When margin debt begins to unwind, that's when the selling gets nasty, and why it leads to ALL bottoms. We are now in the TOP zone, more margin can be added, but it's in process of peaking....that's how you make a top. BE CAREFUL going forward, it doesn't matter WHY a stock should be good, they will ALL stumble badly when the music stops.

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MARGIN DEBT NEAR RECORD LEVELS

http://seekingalpha.com/article/1246731-nyse-margin-debt-and-the-s-p-500-a-sign-of-vulnerability

When is a Bubble not a Bubble?
http://www.thefiscaltimes.com/Blogs/Peek-POV/2013/07/22/Is-Bernanke-Blowing-Smoke-or-Bubbles.aspx#page1

NEVER

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