Ballard Power update (and broader implications of it)

Here is my first post on Ballard Power (BLDP).   That was May 24th 2013.  The shares were about $1.20 at the time.  Here is the model chart from a subsequent post which indicated that an a-b-c retracement was forming, after which the shares would be become a "strong buy".

Below is the actual.  As you can see, my model was pretty close.  The a-b-c did end in a 4th wave after which massive buying skyrocketed the shares.

And so, dear traders, it is time to sell.  That's right, baby, too far, too fast.  The 3rd of 5th is already past us meaning we are at least into the 4th of 5 right now.  There might be another move up but it is not worth it in terms of percentage gains.  Take profits now, dear gamblers, and tell them Economati sends best wishes!!

When this pump is done, the shares will likely collapse all the way back to $1.20.  They could even go for the full mania retrace.

And now for the real news.  The reason I started looking at these micro caps like BLDP and DRYS at this particular time was that they always get pumped up toward the end of a big run of the broader markets.  All of this hot money comes in and pumps PCLN and CMG and other company shares to the moon.  "Hot Money" is code for "Carry Trade Cash".  In other words, Margin Money: debt used to buy shares with in the sure and certain knowledge that the con men at the fed will continue stimulating the markets forever.  When fake, temporary money (AKA credit/debt) is used to pump something up, be prepared for the crash to eventually come.

The economic moon will never be reached, my friends, because eventually the fake money causes a societal schism.  It is happening right now.  Those lower on the socioeconomic scale, those who work hard for a day's pay, they eventually cannot make ends meet anymore.  The middle class is eventually wiped out.  As I mentioned many times in the past, credit is a naked shorting of the dollar and that means a naked shorting of labor.  Whenever you naked short something you trick the markets by increasing the measured supply of it. More perceived labor in the market (the credit based dollar is a token for future labor, essentially a promise to work harder in the future to pay off the debts) has the effect of killing the buying power of the worker and those at the bottom of the scale are hurt the first and the worst.

History teaches that if you step on the necks of the peasants too hard then they take up arms against you.  In the past, that wasn't too big a deal usually because sticks and stones are no match for horses and cannon.  But today it is different.  AR-15s and tactical optics are everywhere in the hands of the common man.  If there is some event that causes the holders of these weapons to self-organize against a perceived common threat then there really is no hope for the establishment.  In a grass roots civil war, tanks don't help.  Fighter aircraft don't help.  Ships and even aircraft carriers don't matter.  These things are just not effective against "Wolverines" fighting on their home turf.

The con men running the show know this.  Why do you think Google recently spoke publicly about their worries over growing financial inequality?  That is Illuminati speak for "tone it down folks, we don't want to get killed in the streets!!".  While so many expect Yellen to be very dovish, I am beginning to wonder.  The fed is now saying they will let the data drive their decisions.  That is an attempt to focus away from the man behind the curtain and to make the decisions faceless.  This is a good way to begin the tightening without having a "bad guy".

Bottom line: there are many signs pointing to the overall markets being very near an important peak.  Once the herd begins south again, it will collapse quickly this time IMO because the derivatives will default.  The leverage on these is so high that there will be no stopping the cascade once it begins.  Call it dominoes or contagion or whatever you like.  I prefer to call it the collapse stage of a Ponzified system in which much of the real value was sucked out a looooong time ago (when the dollar was delinked from gold which enabled a massive, near-zero reserve [i.e. highly leveraged] carry trade).

All of these things will sound impossible to so many right now with the markets touching new highs.  This is herd think 101.  I guess that makes me like the guy in the photo below.