Papers reported that “Both Israelis and Palestinians are reacting with shock to the landslide victory by the Islamic Militant group Hamas” and described the event as a “political earthquake.” Many echoed the editor of the mass circulation daily Ma'ariv who wrote that "a prolonged twilight can now be expected." It should not come as a surprise to subscribers who are well acquinted with the deep link between Mid-East turmoil and the direction of social mood. As we discussed in the entry of July 19, 2005 conflict in the region always flares up when social mood is on the cusp of an important downturn. The initial failure of Israeli-Palistinian peace talks and the first phase of Intifada in 2000 was born with the bear market and traced the initial arc of the bear market almost step for step. Here it is again on the front page of today’s USA Today: “New Equation Shocks Mideast.” The same “earthquake” must be behind both phenomenon because Hamas’ “unexpected landslide” is such a perfect metaphor for the new order that is surfacing in the financial and economic realms. How could this happen overnight? The answer is that it didn’t, but it seems like it because it is such an overwhelming change. What’s new is the recognition that things are different now. The Economy & Deflation section in the February issue The Elliott Wave Financial Forecast (out today) illustatres how the same revelation is unfolding in the economy. |
