In the last BullBear Market Reports I have been highlighting that, with the events and circumstances surrounding the Covid "crisis", economics and financial mechanisms have shifted fully into an entirely new paradigm.  There are no longer any markets, as classically defined, and the system is no longer capitalist.  Some form of Information-centric technocratic regime has taken firm root in political, social and economic structures.  As participants in the financial mechanism (note I did not call it a market) we must rapidly and decisively recognize the bare truth of this massive shift and then evaluate how to best and most profitably participate.

A report was issued recently that concluded that the "Covid Recession" was the shortest on record, lasting only two months.  One is immediately struck by the seeming impossibility of an economic dislocation involving the nearly total cessation of economic activity in a major part of the national and global economies resulting in a mild recession lasting two months.  Somehow this does not align.  But this is just the kind of misalignment and disconjunction we can expect to find in all economic and financial analysis.  Old metrics (such as the accepted definition of "recession") will simply not be able to measure the real world effects generated by an economic basis that has been fundamentally transformed.  We are finding this to be true of standard technical analysis as well.  There are virtually no standard trend channels, chart formations or Elliott Wave patterns to be found on the chart of virtually any financial mechanism since the onset of the Covid crash (and in many cases, even before it).  This is simply a reflection of the fact that the underlying financial/economic basis is no longer the one which these tools were created to describe.  We are faced with the need to totally reassess all analytical tools and metrics and eventually create new ones that fit the emergent underlying reality. 

As was noted in the last report, instead of breaking down from contact with the upper rail of the major very long term trend channel that goes back to 1929, the Dow has instead erupted vertically through that resistance.

Dow, Monthly, Very Long Term: