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Monday, December 8, 2014

how will declining oil prices recalibrate the levels of stock prices, gold, interest rates and your 401K balance?

how will declining oil prices recalibrate the levels of stock prices, gold, interest rates and your 401K balance?

fiction
Edward w Pritchard

These declining oil prices have destabilized the levels of stock prices, interest rates, gold and your 401K balance. Worse the news is full to over use with mention after mention of the price of oil; now approaching $60 per barrel.

 Mention of oil hour after hour on the financial news is disturbing concentration by consumers on timely Christmas shopping which is hurting holiday retail sales and consumption of fast food at McDonald's.

How will declining oil prices recalibrate the levels of stock prices, gold, interest rates and your 401K balance? What does declining oil prices mean to the market value of your primary asset, Your home?

Is there a way to calibrate the value of the important assets in your financial life?

As usual author is too clever in proposing a solution below. Here is what I wrote before about technical analysis tools and calibrating future value of hard assets. It's confusing but quite profound.

roused from my lair by the turmoil of the Markets

fiction
edward w  pritchard

Roused from my lair, my cave like Home, by the turmoil of the Markets I ventured out of my House and into the neighborhood for the first time in a long time. A large commotion was occurring outside and I meekly moved outside my home to observe.

For security and protection I took a part of the blender on the kitchen counter; the pitcher like cup  where the milk shake is mixed or the fruit waits to be crushed, to use as a weapon in the hostile world. Carrying the blender's awkward pitcher I was met by a news crew and cameras as I exited my home. Before I could worry over my disheveled appearance the camera men and attractive female announcer were racing down my driveway toward the pit across from my yard and over my fence. My neighbor had left a large pit of a hole over there for excavating a new house. His project to build a new home had stalled and the pit it left was a bit of an eyesore. 

Many of my neighbors and their children were standing around the money pit. Some I recognized. Frantically the news crew began questioning and interviewing the bystanders about the phenomena occurring in the excavation pit. Listening carefully I heard the reason for the commotion.

Veins of gold lined the walls of the pit. Stocks and bond certificates, floating, rose and fell with the stagnant water levels filling the bottom of the pit from recent severe storms. Why, was the mystery.

Holding the pitcher part from the blender by the handle, I waded into the pit and began to measure the veins of gold with the cup like device from the blender I had carried for protection. I also scooped some of the stock and bond certificates from the water in the pit and emptied them into the outstretched hands of my neighbors. The veins of Gold measured in width formed a perfect cup and handle pattern, a very important technical signal of what was to happen next in our neighborhood. Over and over I measured with the cup  the various veins of gold lining the walls of the money pit; to the same result; a perfect cup and handle formation. The cup and handle formation was an important revelation of what would happen with the money pit [my neighbors abandoned housing project], stock and bond levels and the veins of gold. I had revealed something significant.

The cameras rolled as the attractive female anchor interviewed me. My neighbors, many of whom I had never seen or met,  brought me beer after beer. Later I was on the financial news channel many times. Always, I carried the blender pitcher on TV to explain the perfect cup and handle pattern I had discovered in the veins of gold lining my neighbor's money pit . There are still a few veins of gold lining the walls of the pit which is still unfinished next door. The remaining stocks and bonds certificates are however out of sight for the water level in the pit has fallen precipitously.

I am still shy and reclusive but it's nice to be famous and have my opinions and thoughts televised world over.

Now I am an expert on cup and handle technical patterns on veins of gold lining money pits in suburban neighborhoods. Because of my new found wealth and fame the world is a much less hostile place and I have gotten to know a few of my neighbors who still bring me beers or sometimes invite me to barbeques or tail gate parties. 

Unfortunately my technical analysis skills do not calibrate the proper price of oil during times of uncertainty even if I use parts of a kitchen blender to measure veins of Gold measured in width while forming a perfect cup and handle formation.

Profound is it to measure mysterious relationships between real things with symbolic mathematical ratios but far from practical because hidden forces and groups of persons conspire to obscure pertinent timely impregnable information from curious eyes and minds.

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