While the world is rapt with attention and awe at what is going on with both TESLA and World Markets in general, I started to think about why the Market would be in such a hurry to mark-up TSLA shares (besides the VERY obvious short squeeze). This caused me to turn to possible acquirers for the company. I mean, if you had a war chest of cash and wanted to get a hold of groundbreaking technology, why not just make an offer?? So I began to look at Toyota Motor. This lead me to see certain parallels in the Toyota Motor chart to historical tops in the cycle of Liquidity Bubbles we’ve lived thru in recent times.
Since everyone is now completely enamored with the Japanese market and their companies, let’s take a historical look at the Nikkei and their bluest of blue chips: Toyota Motor. Look how Toyota gets bid up to extreme new highs and then corrects sharply with the overall market during past booms. Furthermore, notice the corresponding highs that the Nikkei puts in which sync up with these periods. As “amazing” as these Nikkei rallies look, they are LOWER HIGHS. And I will argue that this time won’t be any different. The BOJ buying spree on all assets can only do so much and the Japanese public will not take the reigns (as is needed) for a full blown breakout to occur. We are just repeating history.
Conclusion: look at Toyota Motor as a potential sign that the end of this Liquidity driven rally is getting long in the tooth. ©2013 A Feeling Good! Production
