American Express update: AXP bear market likely just started.

Here is my previous post on AXP.   Despite all the DOWphoria of the past weeks, AXP could not break out the top rail of its ending diagonal.  It kissed it no less than 3 times and got rejected each time.


Here is the zoom in showing that this final wave consists so far of an a-b-c with 5 clear waves in the C wave.  Unless AXP can break out right darned quick, that triple top is going to be its death rattle.  Remember, all of this non-happy action is happening despite the media headlines like "U.S. jobs data enthrall".  These are EXACTLY the kind of foolish statements you hear from overoptimistic herd mouthpieces near a top.  And near the bottom we will hear things like "the stock market is dead".  When you read that around mid to late 2016, start thinking about covering your shorts and flipping your bias long.  But only when you have a completed wave count down, of course, because the news means jack shit.  The wave count is everything.

Keep in mind that the weakness is not just AXP folks.  The entire financial sector was red today even though the main stream moron media didn't mention a word about it.

Does this kind of action in the financials look like a strong bull market to you?  Remember the old saying "the banks will bring us back" referring to banks being the first to rally at the beginning of a new credit cycle?  Well folks we are at the end of a historically significant credit cycle, the collapse of which will bankrupt many banks, probably even the one you have loaned your life savings to in the foolish notion that a bank deposit is something more than a loan to a leveraged gambler.  In return you get free checking and free ATM use.  Won't that be a consolation when the bank runs begin and you lose all the money you had stored in these corrupt institutions.  The banks (AKA financials) lead us back when the credit is on the rise but they also get hit the first and the worst when the credit is collapsing.  Banks are in fact nonproductive elements of the economy - a necessary evil if you will.  This makes them marginal players in a real economy.  Only in an economy where fake money is being used can they rise to the lofty heights of importance and wealth that we see today.  All of that and I mean all of it will collapse in the next 5-10 years (if that long).

If you want to know my impression of all the red numbers you see above, scroll all the way down in this post.  'Nuff said.