Of the Indices I follow on the 3rd of December at 11:24 the DAX broke the high shown in the purple circle shown below!
This clearly is an insignificant moment in the history of time, however it confirms that the 2007 top cannot be Yearly pivot 5 of the 309 year cycle! It is either pivot Y1 or Y3. That is how fractal waves work! Hence the 2007 high is Quaterly pivot 3 and the 2009 low is Q4 so welcome to the next confirmed bull market (on the DAX at least)
I am in the process of updating my other charts on the assumption that the global economy is one unit, where in the West we are on yearly fractal wave 5 (corrupt socialist money for nothing societies) and the East is in wave 3 (productive wealth generation (think back when we in the West had child labour, factories spewing out smoke and dumping our rubbish into rivers etc. creating pollution and generating REAL wealth whilst creating a middle class and lifting people out of poverty) .
Those of you that have been follow my recent gold projections Gold Update 26 November will be aware that gold did not follow its projected line on the morning of the 4th December and received my update Gold – Long term downtrend to new lows before retest! .
Everything is effected and interlinked in ways that no one understands yet. We live in a complex physical-socio-economic system that is well beyond the control of the FED or our governments.
I really want to re-emphasize that MAP Wave Analysis, unlike Elliot Wave and Andrews Pitchforks, is a systematic methodical rule based approach, and data is archived and updated in a format that is traceable. This allows easy evaluation of MAP Wave Analysis effectiveness when making investment decisions, as well as trace ability to improve the methodology. As a consequence of this break my rules now are less than one A5 (haf A4) sheet of paper! The break answered many of my “exception list”!!!!
The excesses of the inflationary bubble, which started in uncontrolled and non accountable government government spending once the gold standard (I am not a believer in the gold standard, but it forced governments to restrain their spending – the best of the ideas tried to date!) was abandoned and the limitless QE programs of our central banks, we are going to experience over the next 3 years into mid 2015 when my projections show the ideal wave intersection top, is going to be like the final bubble top into the 1929 peak with a difference – fractal waves behave differently depending on in which fractal they fall in! We are in a bigger fractal wave 5!
You will know when we reach the bubble phase – once we break the QML (center gold line). We are on the 3rd retest – once it breaks through it will be retested but this time as support. If that holds then we enter the bubble phase – a minimum of 100% gain from that successful retest is how I define a bubble.
The excesses of our wonderful beloved democratically elected 2 party same paymaster so outcome is irrelevant system MUST be re-balanced. We can see that Y3 and Y4 correction was a very simple correction for you EW followers! Expect very turbulent times ahead leading into the top, as well as a long period of redressing these excesses.
The debt MUST and WILL collapse – A step back into history how it was done last time
Franklin Delano Roosevelt signed Executive Order 6102 into law, prohibiting the “hoarding” of gold. Under this executive order, Americans were prohibited from owning more than $100 worth of gold coins, and all “hoarders” (i.e. people who owned more than $100 worth of gold) were forced, by law, to sell their “excess” gold to the government at the prevailing price of $20.67 per ounce.
Then, once the government had all the gold, FDR revalued the dollar relative to gold so that gold was now worth $35 an ounce. By simple decree, the government had thereby robbed millions of American citizens at a rate of $14.33 per ounce of confiscated gold, which is why most historians agree that the Gold Confiscation of 1933 is the single most draconian economic act in the history of the United States.
Do you really believe that those in power will not repeat this? They are by brainwashing the public that inflation is good and deflation is bad! Inflation is the ultimate tax that few understand and combined with zero interest rate policy – ZIRP will cause the next bubble by forcing people into stupid investments in order to try preserve their wealth! (thanks Patrick!)
How we choose to do it is what will make the difference and tell us the next fractal wave we are at!