Several wave counts I was working on have now started to break down and no longer fit. This always calls for a review and at this time the obvious move is my Cycle degree wave 3 August 2018 peak. The December 2018 bottom and our present rally display more and impulse wave than a counter rally wave. Many rallies in the past also showed 5 waves up but ended up getting completely retraced.
The Nasdaq is still under a Death Cross and now has run up against the 200-day MA line. If this trend is going to continue then at least the 200-day MA can offer some resistance, but a bear market rally can completely retrace this entire bullish phase. Only time will tell but the tech is taking a beating around the world as its being used to brainwash all of us. Our smartphones have already turned us into digital zombies and governments use it to spy on everybody!
The recent attacks on the Australian parliament are just small examples of how tech is being used to try and control us. Every democratic government is coming under attack and Canada is no exception.
If you think I’m paranoid, I have a reason to be since my Facebook account got hacked last year. How many times have you heard about a Bitcoin robbery and hacked accounts with hundreds of millions gone missing? As you walk the street or are just shopping, look up to the nearest cam and wave, as we are constantly being spied on. Soon when you are caught doing something illegal they can fine you, and steal the fine out of your account by the time you cross the street.
All this may sound crazy but I’m reading about that stuff all the time. We haven’t even touched social media as it is the biggest spreader of false news today. The point is that tech comes in cycles and a bearish cycle is on its way.
The expensive Gold/Nasdaq ratio topped out at 6.38:1 and today this ratio stands at 5.25:1. We have a long way to go before the Nasdaq becomes cheap again when compared to gold. Short term the markets can head higher but there are large amounts of protective sell stops below all present prices.