The Nasdaq, so far has topped out at 7486 and has now started another small correction or the Nasdaq stock party could be over. From here on any record high could be the last record high for 2018. A few are figuring out that this market is doomed no matter how much they spin the bull shit (BS) that it is a good time to invest. There is a huge deflationary crash and bear market coming that only a few might understand. When stock prices deflate, and the gold price crashes together then this is a deflationary crash.
This has all happened before and even recently depending on if you can remember the 2008 crash. For about 8 months “everything” crash together ending at a bottom for gold in late November. Stocks bottomed in March 2009. The exact same forces are at work, where we are in the exact same position as the early 2008 top was.
This time in Cycle degree, stocks will join in with gold, but far more syncronized in the length of time. In otherwords, they can all crash together until gold crashes below $500 again. Mention $500 gold to a gold bug, and they lose it. There are only a few big Nasdaq names that are still pushing the Nasdaq higher, so those 5 big names would be critical to watch for early exhaustion or speed deceleration. The choppy waves are there, the commercial traders have large short positions on the Nasdaq while the speculators are skewed to the long side.
Does it look like the commercials are jumping for joy and in a bullish position? No, the red at the bottom are the commercial short positions, while the lite bar graph on the top represents the large speculator long positions. It is the large speculators that are always wrong at the extremes, except the talking heads always talk about what the speculators are doing not what the commercial dealers are doing.
The Gold/Nasdaq ratio also supports my bearish views as today it sits at a 6.1:1 ratio, which is the most expensive Gold/Nasdaq ratio I have ever calculated.
I guess it is also a good time, to post a very professional description of the warning signs of a market top.