FAZ update: the wave 2 bottom is very likely in. We should know by tomorrow.

The successful wildebeest must at some point cross the river because the feeding and breeding grounds are on the other side.  The trick is knowing when to take the plunge.  There have been several attempts by the herd to wade in over the past year but each time it was met with snapping jaws and so it pulled back, went a bit further south down the river and tried again.

Wave 1 up was another attempt for the FAZ herd to cross the river and so far it looks like those making the crossing are not getting too badly killed for their efforts.  Do you not see in your mind's eye the giant crowd of followers milling about on the banks waiting to see if those with the adventurous leadership get killed or not??   This is exactly what is happening right now.  As long as we don't see a lower low in FAZ than the 61.8 just seen, confidence will begin to build on the shores.  When the initial brave scouts reach a higher high than the first wave up, expect a hoard of bodies to begin crashing into the river at once.  It has been a long journey south looking for a place to cross and when that place is found it will be taken advantage of quickly.

The financial sector has been showing signs of rolling over as reported many times in these pages.  Economic conservatism will kill the leveraged financials.  This is a good thing despite what the government and government controlled media would have us believe.  Leveraged financials steal prosperity from real workers and give it to the already rich elite.  It is a fucking scam of the highest order, one which I believe meets the definition of treason.  It is certainly mass partial slavery - the stealing of a portion of everyone's daily labor through the scam of credit inflation.  It will lead to very large social problems during the unwind phase in a manner that closely resembles a drug addict going through withdrawal pains as he goes "cold turkey".

This new downward direction of the financial sector will now become reflected in FAZ, the triple daily inverse of the financial sector.  Large profits await anyone buying in right here right now.  Of course in every gambling model there always has to be a sell trigger and that one is very easy: a break below the early June low means the model is wrong.  But there are so many signs working together right now that  

I think the chances of that happening are approaching zero. 

I have not, since I began writing this blog, ever written "approaching zero" in regard to anything including the odds of a major turn around being at hand.  I'm writing it now.  Time will tell if I am a world class genius or a damned fool.  With market analysis there is generally no middle ground.  In any case it should be financially entertaining to the reader who, having paid nothing to read it, probably is getting exactly what he/she paid for.