The Holy Grail

"The most important factor in your success is ; You ..... "
Been looking for the Holy Grail ?
Have you tried all bunch of techniques ? (Gap trading, break outs, moving average, dip buying, fibbonaci, etc ....)
Been reading lots of blogs ?
Well, at least I hope I have been part of your success :)
The key to a holy grail is simple ; before you trade, read lots of books (with all kind of methods), find a technique that fits you, paper trade (show your results to a coach), then start trading.
PS : See the rules I posted on the top right hand side of my blog.

Spain Bolsa de Madrid IBEX 35 warning

Spain Bolsa de Madrid IBEX 35 Index weekly chart ;
This chart is worth 10,000 words right now ....
A weekly close below this current key support level will cause severe damage

The big picture, India is the clear winner

India Bombay Sensex 30 Index chart analysis ;

1) Current price this morning stands @ 16935

2) Price did bounce up above its 200 days exp MA, confirming its uptrend is intact.

3) Pay attention to the stop loss level

Long term chart confirms that "India will lead" once markets reverse into a bullish mode.

Financial crisis teach us one thing ; focus on those standing out during hard times, and get ready to buy them when markets improve.

Apple Inc (AAPL) and India shall be clear winners

Citigroup Inc. (C), bull trigger or fake move ?

Citigroup Inc. (C) chart analysis ;
1) Pay attention to that bull trigger level (buy the break out on increased volume)
2) If price goes below $3.80 ; the recent rise was a "fake move"

Baltic Dry Index, the only good news out there ?

Baltic Dry Index wwekly chart; the only good news out there ?
1) Higher lows pattern intact
2) Pay attention to the "past fake moves"
3) If the break out takes place, I expect a bullish reversal for the Shanghai index

Visual trading plan using the SP 500

Visual trading plan using the SP 500 index weekly chart ;
1) Focus on the "key price channels"
2) "Pink arrow" is what I consider a low probability ; current events do not favor this scenario.
3) "Yellow arrow" is probably what we are all expecting ; testing 950 and bouncing up to reach new highs ....
4) "Green arrow" ; huge "W" shape, fear will be so high that we will all pray that China saves us ; or at least save themselves since they could face more problems than us if their factories go bankrupt. Imagine all the millions of workers stuck in big cities without a job ....
Gut feeling ? I call this my "big picture" with one clear message ; China will one way or the other bail us out of this mess ...... if they don't, they sink as well ....

The Dow Jones Industrial Average

Dow Jones Industrial Average chart analysis; The SP 500 index looks similar
1) Clear resistance at its 200 days exp MA
2) Price channels are quite clear as well (resistance and support)
3) Current name of the game ? Buy the oversold, sell any rally ....
North Korea (probably bankrupt) will keep on putting pressure on global markets.
The PIIGS countries are bankrupt, so is California ......
Target du jour ? Spain .....
Austerity measures could make things worse .....
No real reasons to buy and hold .........
Light crude oil (one of my leading indicators) did manage to bounce up, but the other one (Shanghai index) is still in a real bear market .....
Like I said, focus on extreme oversold conditions ; focus on blue chips, buy the "extreme oversold", sell on any rally.

Market opinion

6:50 PM, Brussels time, the SP 500 is facing some heavy resistance at its 200 days exp MA.
Still sitting on cash (100%)
What else I am watching ?
Citigroup Inc ( C ) did find resistance at its 50 days exp MA ; let's see if it manages to remain above $3.9
Cisco Systems ( CSCO ) ; will Cisco cause a tech pull back ? Watch that key support @ $22.7
US Nat Gas Fund (UNG) ; bottom pattern taking shape ?
Oil Services ETF (OIH) ; disaster du jour ? watch the last key support @ $96

What motivates us

SP 500 index warning

My goal here is NOT to scare you ; its actually me just writing out possible scenarios on my trading diary.
This trading plan is on my mind for the SP 500 index ; A head & shoulder pattern.
The key trigger of course is our current "neckline".
What would cause me to change my mind ;
1) A sideway pattern (tight channel) above 1090 for at least 10 days, followed by higher lows.
2) Good news/fundamentals (ie : Europe decides to inject more cash)
3) Shanghai index fets above 3000
4) Euro finds a bottom ..... mmm
If I have to weight probable scenarios, this head & shoulder seems quite logical .....

The end of Microsoft Corporation (MSFT) ?

Microsoft Corporation (MSFT) chart analysis ;
1) Clear double top ("big picture")
2) Clear main trend broken (note that the last top was slighly higher than the previous one, that is why my trend line goes from the lowest low to the low prior to the higher high.
3) Fake move was quite clear, followed by a price/volume/news action
4) Ex support is now our key resistance channel
5) Possible oversold condition could bring in value players
Gut feeling ; The end of Microsoft ? Well, at least not yet ..... but this crisis will/could cause some serious damage to well known Tech names ......
The clear winner ? Apple Inc (AAPL) !
If Microsoft gets back over $28 in the next 2 weeks, I'll change my mind

Crude oil bullish reversal ?

Light crude oil chart analysis ;
1) Pay attention to that recent candle reversal
2) It was followed by higher lows
3) We are now facing an important resistance level
4) Triggers are quite clear (see green and red levels on the chart)
Gut feeling ? Crude oil and the Shanghai index are my main leading indicators, both where oversold, so a bounce up was expected ; key question ; for how long ?
As usual, expect the unexpected ....

PowerShares QQQ Trust (QQQQ)

PowerShares QQQ Trust (QQQQ) chart analysis ;
1) Candle reversal in progress ?
2) Price fighting hard to remain above its 200 days exp MA
3) Tech was weak today, compared to other sectors
4) Do not jump to conclusions (as going long yet)

My Vix Trading System updated

Vix indicator trading system updated ; see settings on Stockcharts.com
Been publishing this several times now ; funny how many people considered that the VIX was "dead".
The second chart shows how the crossover played out on the SP 500 index
Now ? Indicator seems a little "overbought" .....

SPDR Gold Trust ETF (GLD), failed ABC pattern ?

SPDR Gold Trust ETF (GLD) chart analysis ;
1) Was that a failed ABC pattern ? See ABC pattern on the top right hand side of the blog.
2) "C", the long term buy trigger (right above "A") failed !
3) Pay attention to those "triggers" ; Green arrow or Pink arrow ?
4) Note the tendancy for Gold to form parabolic rises .....

SP 500 Index chart analysis

SP 500 ($SPX) Index weekly chart analysis ;
Current pattern suggests we could see "TWO" possible scenarios ;
1) See the light green arrow pointing to a head and shoulder ; price will first drop hard, rise up again towards a right shoulder, then ..... crash ...
2) Straight break down below support to test the 950 levels
I am sitting on cash (100%)
Spain is now in real trouble, but the biggest fear right now is coming from North Korea.
Gut feeling ? North Korea had no choice but to strike South Korea into a provocation.
Why ? If you think that "we" are in a financial mess, North Korea is probably close to the end ....
They "had" to strike, in order to get a "deal" .....
Market crash ?
How about this ; "It was time for a real retracement !"
The SP 500 went from a low below 700 (March 09) to 1200 without a major pull back !!!
Remember by rule number 1 ; think like a value investor !
Charts never tell you the FULL story :)
Get ready to go shopping soon

Austerity measures in Europe

"Austerity does not produce prosperity" , moving our hard earned cash and companies to Asia.
"Austerity has suddenly become the universally prescribed cure for the fallout from the financial collapse. If widely adopted, it will prove worse than the disease."
Cartoon inspired by this article by Robert Kuttner at the Huffington Post

Financial ETF (XLF) crash ?

Financial Select Sector SPDR ETF (XLF) weekly chart analysis ;
1) We have a clear broken trend
2) Fake move ; that is price breaking out above that tight channel (see chart)
3) Support level is quite clear
4) Key question ? Level of bond holdings ? (Greek, Irish, Italian, Spanish, Portugal ....)
5) Crash probability ? Medium to high ....

Daily opinion

Latest painting (done in my garden, with Bloomberg TV on) ; title ; "Lost in the Jungle".
Nice sunny days in Brussels :)
Tommorrow, I'll be 44 ..... mmm ..... not sure that I am getting wiser, but glad I am mastering my emotions .... (as a trader)
Good bounce up on Citigroup, but not a buyer yet.
Apple Inc (AAPL) did manage to get above its 50 days exp MA ; Use it as your stop loss.
QQQQ ; Nice bounce up above its 200 days exp MA (use it as your stop)
UNG (Nat Gas ETF) ; tight price channel ; watch out for a strong break out

Light crude oil warning signal

Light crude oil chart analysis ;
1) To understand the ABC pattern, look at the top right hand side of my blog
2) We are facing two scenarios (double ABC pattern)
3) Focus on the blue ABC triggers and the green arrow ; Probability ? Well, if Shanghai keeps on going down , this scenario is probable (Gut feeling ; I doubt it)
4) Pink arrow confirms the current ABC pattern (Red squared), but it would suggest that the Euro rises fast, leading to a Dollar crash ....
5) Yellow channel is now our key level to focus on
6) Sideway pattern ? $70 to $80 is highly probable for at least 2 to 4 weeks, then .....
Conclusion ; A huge move is about to take place. A fast rising Dollar against commodity based currencies is sending us a message

Euro Dollar chart analysis

Euro Dollar chart analysis ;
1) Current pattern is still very bearish
2) News event (fundamentals), still very bearish
3) Oversold ? Probably, but probability favors a sideway pattern
4) Focus on those trigger levels (Gut feeling, we go down again)
5) If the Euro spikes up, watch out for fake moves !
Conclusion ; we could get a fake move up, just remember that the mess is far from over

ETFs to watch next week

ProShares UltraShort MSCI Brazil (BZQ) ; after a quick price rise, BZQ went below its 200 days exp MA. Note that this MA was a clear previous resistance. Safe re entry is above $32.5

iShares Barclays Aggregate Bond (AGG) ; raise stop to $105

ProShares UltraShort Oil & Gas (DUG) ; Friday's candle reversal (bearish) could signal that DUG is overbought.

Direxion Daily China Bull 3X Shares (CZM) ; nice bounce up (highly volatile) ; but would wait for some higher lows pattern before jumping in

ProShares UltraShort 20+ Year Treasury (TBT) ; oversold ? Sitting right on support @ $38. Stay out, allow a sideway pattern to form

Microsoft Corporation (MSFT), change the world or go home

Microsoft Corporation (MSFT), change the world or go home !

This logo was created by Hugh Macleod at Gapingvoid.com

I read his blog daily :)

Ok, back to the chart of MSFT, we shall do a quick case study ;

1) Price breaks out above its 200 days exp MA

2) Gap on increased volume and good news

3) Notice the price reversal ? The next move tells us that $27 is a future key support.

4) Price pattern gives us a clear message ; important resistance

5) We test again an earlier support level (now key reliable trigger)

6) Level confirms key resistance ; now tells us that we are in a clear channel

7) We broke the channel ! But .... price pattern shows us a bullish reversal !

Trading plan : The low of friday if broken will cause real damage

Key re entry level is right above $28 (200 days exp MA)

Current market opinion

Back from vacation in Bodrum, Turkey. What a wild week !
Everyone was talking about the markets and the Euro.
I am sitting on cash right now, not convinced that this "pull back is over yet".
I am focusing on weekly charts, you can see the settings here on Stockcharts.com
Concerning the SP 500 ; 1150 confirms the 200 exp MA (weekly) as a major resistance. I see a key support @ 1050 ; focus on those two levels next week.
Is the SP 500 oversold ? Its probably on your mind right now, and after the bounce up on Friday, you might be tempted to buy on Monday .....
I'll pass .....
We need higher lows first ....
The panic is not over yet .....
Fundamentals are actually improving, but fear of a crash is on everyone's mind .....
Have you seen Greece Market Index ? Type $ATG using the settings above ; it looks nasty ...
Greek index will test a March 09 support @ 1500 ; then ??
Shanghai Market Index ; another reason to worry, try $SSEC , its now below the 200 weekly exp MA. No wonder light crude oil has been crashing ! By the way, oil is also below its 200 exp MA ! (Use $WTIC to view crude oil).
The Dollar index ($USD) , yes, clearly overbought but still very bullish !
Gold ($GOLD) ; Everyone, along with their brothers and Grand Mothers are buying Gold (so are the tourists I spoke to in Turkey). Gut feeling about Gold ? Will probably go up again, then snap down hard, crashing like all bubles do .....
The Euro ($XEU) ; Clearly oversold, will probably try to go a little higher, then trade sideways, and crash again . The end of the Euro ? No way ..... European credibility is at stake right now ; and the cost of ending it will be way too high. Its actually a good thing for our exporters.
Companies I follow ;
Citigroup Inc ( C ) ; $3.5 level confirms a previous support from March. Not a buyer yet, allow some higher lows to take shape (Daily chart)
Apple Computer Inc (AAPL) ; Its 50 days exp MA is now its key resistance. (Daily chart)

Sold, going on vacation

Back in cash, sold recent indexes bought on a dip (CAC 40 France index, Bank index, and others).
Market could go higher, but I hate to have positions while sipping coktails on the beach ...
Heading to Bodrum, Turkey.
Will be back next saturday.
PS : About the markets .... expect the unexpected as usual :)

Focus on the SP 500 and the VIX Short Term Futures (VXX)

Time to focus on the SP 500 index ($SPX) and the SP 500 VIX Short Term Futures (VXX).
Chart above is SP 500 index ; settings used ; 3 exp MA (5, 50, and 200)
Use the same settings for VXX ; you'll understand this post :)
SP 500 is facing a key resistance @ 1180 (and the 5 days exp MA is not "above" the 50 days)
VXX is facing a support level @ right above its 50 days exp MA (mentioned a few days ago that VXX was overbought.
Now what ?
1) If VXX can climb back above 25, expect a pull back in the SP 500 to 1150
2) If VXX dips below 23, the SP 500 will try to test its recent highs

British Pound, the big picture

British Pound weekly chart analysis ;
1) The big picture still shows a higher lows pattern with a possible ABC pattern if "B" (key support) level can hold in the next two weeks.
2) To understand the ABC pattern ; when price zooms up fast (after a bearish trend), see green circle in May 09, it will tend to find a resistance level then retrace (thus forming "A"). The Pound did retrace indeed ! It is sitting on an important support level (also called "B"). The "C" trigger is our long term buy signal .... but we are not there yet ....
3) The ABC pattern is easy to understand is you follow the news ; yes people, key events do move the markets, giving us the catalyst we need for a break out.
4) The UK is now facing a new government ; we now need to see if the Pound can climb above 1.5250, then remain in a tight channel, and eventually break out higher ....
5) If this scenario holds, the break out above the long term down trend could take place in Jan 2011.
That's my plan, I draw the chart, and try to have a visual picture of a potential reward.
Then ? Follow the news, and wait for key events to "trigger" those break out ....
Can this plan be wrong ? Of course, if the Pound deeps below 1.4500
Plan your trades, don't just discover something new everyday

Nokia Corp. (NOK), buy and go away ?

Nokia Corp. (NOK) weekly chart analysis ;
1) Long base patterns usually means HUGE break outs .....
2) Pay attention to the light green trigger levels that could confirm the "probable scenario".
3) Red arrow = low probability
Gut feeling ? Will someone please BUY Nokia !

iPath SP 500 VIX Short Term Futures (VXX)

iPath SP 500 VIX Short Term Futures ETN (VXX) chart analysis ;
Setting used, same as my "Vix trading system" see link here (Stockcharts.com)
"Spread" between the two moving averages (exp) shows that VXX is "overbought"

Get ready for a major bull market in Shanghai

Weekly chart, Shanghai Stock Exchange Index ;
1) Right on support channel
2) Current long base pattern with a possible ABC "twist" to it :)
3) A close above 2750 (in the weeks to come) will confirm my "probable scenario"
Gut feeling ? With the US and the EU injecting so much cash to pump up their economies, imagine the cash level China has to boost its economy ?
PS : Watch commodities ! Get ready to go long on crude oil soon ....

Gap du jour, gold and silver stocks

YAMANA GOLD INC ( AUY ), Barrick Gold ( ABX ), Hecla Mining ( HL ), Goldcorp Inc ( GG ),
Newmont Mining Corp Inc New ( NEM ), El Dorado Gold ( EGO ), Gold Fields Ltd Sp Adr ( GFI ), Harmony Gold Mining Co Ltd ( HMY ), Iamgold Corp ( IAG ), and of course the two well known ETFs, GLD and SLV.
Am I a buyer ? Nope
Bullish on the $USD Dollar .....
Watching Gold and the Dollar going up .... one of them has to SNAP.
Gut feeling ? The Dollar wins

Typical problem in Belgium

Direction to Brussels in Flemish (left) and French (right).
With all the political problems in Belgium, I often wonder how this country remains credible.
And Brussels is the capital of Europe .... mmmm

Euro Dollar update

Euro Dollar chart update ;
1) The bailout candle did teach use several things ; 1.3100 is our main "key trigger"
2) A Euro above 1.2900 (in the next few days) would confirm the "reversal"
3) Focus on the "warning level", a weekly close below it could signal that traders do not fully trust the "bailout" ....
Gut feeling ? Bottoms tend to be formed with extreme violent swings .....

Euro Dollar chart update

1) Nice bounce up from an extreme oversold condition
2) Quick resistance level is that trend from mid April to May
3) Next major resistance is the "main trend"
4) Target ? 1.3200 level ?
European leaders unveiled a loan package worth almost $1 trillion !
“The euro zone will defend its money,” French Finance Minister Christine
They have said many things in the past concerning Greece, and did not act .....
Gut feeling ? The Euro could form a sideway pattern with higher lows (for a few weeks), then ? Well too early to tell ....

Cartoon on Personal Financial Advisors

Cartoon on personal financial advisors ; "What crash are you talking about ? Do not listen to the financial media"
What will you do on monday ? Sell ?

Shanghai Index is a leading indicator for crude oil

Weekly chart ; Shanghai Stock Exchange Index versus Light Crude Oil
Shanghai is a key leading indicator for crude oil
Gut feeling ? Shanghai bounces up above 2500 (Oil tests $70) then zooms upwards

SP 500 versus 30 Year Treasury Bonds

Weekly chart, 30 Year Treasury Bonds versus the SP 500 ($SPX)
1) Support level was quite clear ; 115
2) Resistance level stands @ 122.5
3) Warning !!!! If bonds shoot up above 125, expect a REAL crash !
Gut feeling ? Its probably the mother of all buy on the dip (SP 500)

Apple Inc. (AAPL) probable scenario

Apple Inc. (AAPL) chart analysis ;
1) One of my rules about a parabolic rise ; "it often snaps hard" and pulls back ....
2) Price / Volume action is just a normal retracement to previous resistance channel ?
3) Probable scenario you see is pure "gut feeling" ; wait for a tight price channel followed by a break out above $240

Market opinion

CAC 40, France's Index, weekly chart study ;
1) Ok, we now have our clear retracement ..... to test the initial break out ? (July 09)
2) Will support channel hold ?
3) Notice how the MACD did have a clear divergence
4) Buy levels ; Well actually hope to inject more cash at those levels.
Gut feeling ; While many other indexes have "better looking charts" ($SPX, $Nasdaq, etc), I am actually focusing on "valuations". I also know most companies within that index (being in Belgium, and often going to France).
Pay attention to the rules on the top right hand side of my blog ;
Think like a value investor, and use "basic charts"

Bought some European ETFs

Did some shopping today ; CAC 40 (France index) and the Euro Stoxx 50
Position size ? 3% of the portfolio
Will increase positions as/if the market drops again
Technical approach ? No way .... pure common sense ....

Dow Jones Industrial Average

Dow Jones Industrial Average chart analysis ;
A picture with several arrows is worth 1000 words.
It reflects my gut feeling ;
1) We are way oversold .....
2) Focus on those key triggers
3) In favour right now ; the light green arrow

Market crash ?

Wow, what a drop ....
No, I did not have the "GUTS" to dive in and buy FAS, QQQQ, C, and the usual suspects ....
Good news for me ? The $USD Dollar index :) (via UUP)
Was that sell off caused by "machines" ? Trading systems .....
We shall soon find out ....

Get ready to buy France CAC 40 index

CAC 40, France's index, weekly chart.
Settings ; 40 & 200 exp MA
1) Notice the double top pattern confirmed by the 200 weeks exp MA as a major resistance.
2) Support level is quite clear.
Now that we all "understand" this basic chart, let us focus on pure business logic.
1) Earnings have improved .... quite well
2) Greek contagion ? With all that cash available, I doubt it ....
3) Falling Euro = more exports
4) France is a MAJOR exporters of goods .... (same as Germany)
Biggest buy on the dip about to take place ?

Citigroup Inc. (C) trading plan

Citigroup Inc. (C) chart analysis ;
1) Are we seing a "B" level (ABC pattern) ?
2) Last candle shows a potential bullish reversal
3) Entry is right above $4.30

PowerShares DB US Dollar Index Bullish (UUP)

PowerShares DB US Dollar Index Bullish (UUP) ; amazing price/volume action !
Been bullish on the Dollar index for a while, but I never like that pattern (parabolic rise).
We now need a channel (sideway trade), until the "next" break out

Cinco de Mayo

Happy Cinco de Mayo to all my Mexican friends !
PS : I use to reside in Mexico ......... Good old days .....

Vix trading system is way overbought

Vix trading system update ; you may see the settings here
Why do I see the trading system as "overbought" ? Spread between the 5 and 20 days exp MA.

Update of the Keltner channels with QQQQ

Quick update of the Keltner channels with QQQQ (see past post to understand the Keltner channels).
The "bear warning signal" was activated ; the 5 days exp MA went below the upper band of the channels. Support is quite clear right now ; its the 50 days exp MA.
Note that the "crossover" has not occured (5 days & 50 days exp MA) ; so no sell signals (If you are using this method)
Traders may consider the "upper band" of the channels as a "trigger" to re enter (see trigger on the chart)

Pfizer Inc (PFE) is now a safe heaven ?

Pfizer Inc (PFE) chart analysis ;
1) Market drops, and Pfizer manages to zoom up on real strong volume
2) PFE got above its 200 days exp MA
3) Pay attention to the stop loss level
Gut feeling ? PFE just gave us a clear message ; buy me when the market turns up again

How I use Keltner channels

To understand the Keltner channels, visit Stockcharts.com
I use them to spot reversals
Pay attention to the light green circles ; they actually confirm that a crossover took place (5 & 50 days exp MA) ; I often use those settings.
Red circles are your "bear warning" signals
Blue circles are your bullish trend "confirmation" signals
Current position ; still bullish since the 5 days exp MA did not cross below the "upper band".

Euro Dollar chart analysis

Euro Dollar chart analysis ; The latest news over the weekend (Bailout for Greece of 110 B Euros) did not "convince" traders ....
From Bloomberg ; Strategists have lowered euro targets on speculation the region’s worsening government finances will keep the European Central Bank from raising interest rates this year, while futures traders bet the Federal Reserve will increase borrowing costs, making dollar-denominated assets more appealing.
Key triggers : Bullish above 1.3400 (I doubt it)
Bearish pattern intact, will confirmation trigger @ 1.3150

Bullish reversal in Greece ?

Lyxor ETF Greece (in Euros) weekly chart (can be found on Boursorama.com)
1) Last weekly candle is a possible bullish reversal
2) Volume (not seen here) was quite HUGE
3) Down trend confirms that 5.5 is a perfect re entry level

SP 500 chart analysis

SP 500 chart analysis ;
1) Focus on current support level (ex resistance) @ 1180
2) 50 days exp MA stands @ 1170
3) 200 days exp MA stands @ 1096
4) Price spread confirms overbought condition ? (Current price versus its 200 days)
5) See "spread" of early Feb and how the SP 500 bounced up right on its 200 days exp MA
6) Does that mean we will retrace back to the 200 days exp MA ?
Gut feeling ; Financials (XLF) ; if it breaks below $15.5 next week , expect some real damage

A Euro crash will save Greece, Portugal and Spain ?

A reader made a great comment regarding the Euro ; why is it not "crashing" ? (With the recent news from Portugal and Spain).
Euro Dollar pattern is still very bearish, but also very oversold as well .....
The bad news (Portugal and Spain) was probably already "PRICED IN"
Short the rumor, and cover on the news ?
Gut feeling ? Traders are waiting to see how the ECB and or the IMF will react towards Greece, Portugal and Spain ; Countries like Germany keep on sending "abnormal signals" (will help, will not), and I doubt that the German population will agree to bail them out ....
I would not agree to bail them out since the "price tag" is way too high (over 300 B Euros).
Those who hold Greek bonds should consider this simple fact ; they are busy negotiating a "way out of this mess" by paying you back "half" of what you own .....
What other ways do we get out of this mess ? A Euro crash ....
Great for tourism, exports, and real estate.
As far as I am concerned, a strong Euro did cause a LOT of problems in those countries ; local workers never had a salary higher than France or Belgium, but their rents and cost of foods (and other goods) spiked up to a point that the old middle class was destroyed ....