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The Charts of Jaysus and the Charts God Intended

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

Over the past few weeks, the NASDAQ has been a thing of absolute beauty. It almost makes me think there’s still a normal market somewhere. Just look at that top. Smooth up…………smooth down………..break, retrace, and plunge. Gorgeous! Just like the universe was designed to operate. Now THAT is classical charting.

But the Fed isn’t quite as hung up on the NQ as they are the ES. That’s where their freshly-printed digital dollars go. And the fact is that their machinations, interference, and screwing around with an otherwise organic market completely screws things up.

The portion I have highlighted was a beautiful top. The aftermath should have looked like the chart above. Instead, it is getting pulled by the Powell Tidal Wave into a distorted freak of nature, until it finally gave way to gravity once more. What a mess.

The beauty of the NQ is, naturally, expressed just as beautifully in the ETF:

As well as individual stocks that Jerome Powell is not scurrying around the Eccles building buying, such as Peloton, which has lost one-third of its entire value in just a month’s time.

My point is that the “targets” of the Fed, like the ES, are freakish mutations that aren’t allowed to behave as a free market should, whereas there are still pockets of the equity world which more or less can actually behave As God Intended.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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