$COMPX breaks support

$COMPX now appears to be breaking down.  As you can see, the support line from mid May has just been breached to the downside and it happened during green 3 of blue 3 (i.e. a 3rd of a 3rd).  Barring a very unlikely break back up into the channel, we can expect lower prices ahead.

Interestingly, the peak of the chart centered about the level 4440, almost as if painting the tape itself to create an arrow pointing to that value.  While this number probably sounds like it was pulled from thin air it might serve to ponder on why I specifically mentioned it several times in these pages as early as Feb of this year such as in this post.  To see them all, just search the blog for 4440.

 

It is very clear to me that the general tone of the market and of the economy is peaking.  Certain stocks are making last ditch short busting skyrocketing shows like Intel while at the same time the breadth of the rallies in terms of participation is collapsing and there is clear bearish divergence between the Russell 2000 small cap stocks and the big names.  The termites have eaten right up to the paint and there is very little structure supporting this leveraged market.  

Once the real panic begins I believe it will be one for the record books.  The headlines are now a mixture of hyper-optimism and calls for a market top.  The investment community is getting bombarded with news that basically says the fed driven rally is over because QE is ending. Yellen says that biotechs are "stretched" which is of course the understatement of the century and which of course overlooks the fact that the whole market is "stretched" and distorted such that earnings mean little to nothing.  People should be looking at price/book as a value indicator and even that is suspect because the book of the banks is vastly overstated by failing to mark what are essentially worthless assets to their true market value.  

The amount of gaming and distortion that has taken place in our financial markets is truly historic, and ALL of it was made possible (and therefore a certainty to eventually happen) by virtue of a debt based, fraudulent, dishonest money supply based on fiat currency and more importantly fractional reserve banking.  Please, please, please do this one thing for me since I have worked so hard to provide so much information to my readers.  PLEASE know the root cause of all the coming carnage.  It is not what the talking heads will tell us it is.   

Everything they will be saying will be "truthy" but not root cause.  They will do their best to get us to agree to go right back into the same dishonest scam ridden money system after the collapse and we the people must become informed, inform others, and be activists and agents for change in this one regard: institute an honest money supply which completely outlaws fractional reserve lending and fiat currency.  This is the only way to enable a long term return to societal values of paygo, work for what you receive, lack of nanny state, more personal privacy and freedom through smaller, more effective government, lower prison rates, you name it.  These things might not sound interconnected but I assure you that they are.  Money makes the world go 'round and dishonest money makes the world go 'round dishonestly.  They two concepts are inseparable.