The Most Dangerous Chart in the World

That's what Toby Connor of GoldScents calls it.

Last month I warned about the bubble in the stock market, and what was going to happen when it popped. Make no mistake the chart of the S&P is the most dangerous chart in the world. When this parabolic structure collapses, it is going to bring down the global economy.

... I expect the Fed and the plunge protection team to go into full panic mode this weekend, come out Monday morning with guns blazing, and try to stop the selloff. Unfortunately this behavior is what has allowed this parabolic structure to develop. Every time the market has tried to correct over the last year the Fed has prematurely aborted the selloff...

...If on the other hand the selling pressure overwhelms the plunge protection team and starts to spiral out of control next week, then we are witnessing the breaking of the parabola and the end of this bull market...



...Whether the parabolic structure collapses next week or in two months we all know what the Feds response is going to be. They are going to reverse their taper decision and double or triple down on QE. The problem is that when a parabolic structure collapses it can't be put back together. My theory all along has been that when the stock market bubble pops the Fed would then completely destroy the dollar trying to pump it back up and that liquidity would then flow into the commodity markets instead of the broken parabola of the stock market and create another inflationary event similar to 2008.

There are a bunch more where that came from.



Gird your loins.





Hat tip: BadBlue Money .







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