Al-Qaeda Is Our Friend? How Can That Be?

Charts: The S&P 500 is throwing up a series of Doji Candlestick formations. Doji Candlesticks can best be viewed in a day to day chart sequence that covers a few weeks. In a chart like that a Doji looks like a little rectangle on any given day, a little box that pops up with the starting and finishing price for the day about the same, a kind of sawtooth pattern emerges. This is bearish, signaling a market peak, but it is only a short term or medium term pattern, unlike a big head and shoulder pattern which would be scary under these circumstance.

If we look at longer term patterns it looks better. The average secular (long term) bear market lasts 13 years. Today it looks as though a 13 year secular bear market is ending. The S&P 500 has to go up another 5% for it to convincingly beat its previous secular bull market peak, this would then be saying a new secular bull market is under way.

If 1500 is taken out in big volume and the Doji formation proves prescient, it could spell a new leg down. The jury would then be out on the 13 year bear market being over.

Cold War II: The US Navy isn't sure that the Chinese Navy really zapped the Japanese Navy with targeting radar ( a very hostile act, the prelude to weapons fire). We can ascertain this by reading between the lines in official US Navy pronouncements on the issue. China is actually acting pretty grown up all of a sudden, and Japan sort of looks like a whiny baby. Both countries are talking to the US Navy like they are kids talking to an adult. "He started it!" "No, he started it!" Cold War II looks to be mellowing out a little bit, for now.

Long War: Syrian rebels continue to take the wood to Assad's Army. The best group of fighters are Al-Qaeda militias. The Al-Qaeda fighters are ripping Assad apart. This is only happening because Qatari Intelligence seems to be pretty much running the show. Qatar is okay with using Al-Qaeda as a weapon. Probably the CIA wouldn't do this if it were 100% in the driver's seat. The Qataris probably think they can control the Al-Qaeda good bad guys once the bullets stop flying. The good guys have no choice but to go along with the Qatari game plan. This is beyond terrifying. This is like having your bowels turn into a block of ice. When analyzing terrifying geopolitical phenomena it is okay to scream out loud. Let it rip, belt out a wail of remorse, fear and panic, it helps, trusrt me.