Weekend Update – More Flash Crashes!

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Tuesday Update...

Not much to add, but tomorrow looks like it's going up in the morning at least, with a possible sell off into the close?  I say possible because the gangster have full control of the market right now, and will ignore the overbought short term charts if they want too.  I do expect the 60, 30, 15, etc to become overbought by midday tomorrow, which would indicate that they should rollover into the close and end the day lower... but without the necessary volume, and government manipulation, it might not happen?  Anyway, here's a video with my thoughts on it...

(watch on youtube: http://www.youtube.com/watch?v=xbXSvE5zZ9g)

The link to David Wilcock is here:

http://stevebeckow.com/2010/10/24/david-wilcock-disclosure-the-event-and-chinas-october-surprise/

The link to Ben Fulford is here:

http://curezone.com/forums/fm.asp?i=1712809

Red

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Are Flash Crashes Now Becoming The Norm?

(To watch on Youtube: http://www.youtube.com/watch?v=TEGZvj3lQUA)

The G20 meeting this weekend must have spooked the currency market as we had more flash crashes.  This post by ZeroHedge shows severals charts of the crashes.  So what does all this mean?  I wish I knew... but I don't.  But if I had to speculate, I'd say a big move is coming next week... and I don't think it's going to be an "upside" move.

While we could still go up, as the gangsters still have the printing press going full steam, the upside is very limit now.  All the leader stocks are at nose bleed levels now, and it's hard to push them up any higher without a pullback first.  We all know how they rotate from sector to sector, pumping each one to keep the Dow, Spx, etc... from collapsing.

They might keep up until the election, and the dump it hard.  However, at some point, gravity will take over and market will sell off hard.  All these flash crashes show you how vulnerable the market really is.  One surprise false flag event, or some other major default, would crash this market in a heartbeat!  So be on your toes, as when she falls... it will be fast and hard.

Looking at the charts, the market is clearly ready to rollover and drop quickly.  I think we'll see it happen next week, as smart traders will bail out before the elections.  Who wants to hold on any longs when the QE2 is most likely already priced into the market now.  That limits the upside, even if it passes as the market expects it too.  But what happens if it doesn't pass?

If I were a big time billionaire, and was already long the market from the 1040, (or 1010) lows, I'd be cashing in my chips this coming week, as missing out on a few points higher from more stimulus money is better then losing all my profit if the stimulus money doesn't show up.

While I'm sure most of the billionaires have insider information as to where the market is going after the election, so all you have to do is see what they are doing.  Since they are likely the "smart money", and are commonly referred to as the "big institutions", just look at these charts Cobra posted to find out the real truth.

Looking at the first chart, you can see that the institutional selling is at a very low point right now.  Notice that the chart looks eerily similar to the last few days of the April high... just before a huge fall?  The last few days have also showed a slight move up in the distribution.

This chart should speak loudly to you, as "they" are on the "inside" and know what is coming next.  Look at the accumulation levels too... does that look to you like they are buying heavily in anticipation of another big rally up?  It doesn't look that way to me, in fact it looks like the amount of buying is lower then the previous run up from the July 1010 low to the August 1130 high.

Remember this people have the inside knowledge, and "if" the market was going to be push up to our DIA 118.16 FP now... those buying levels would be much higher then they are.  Our DIA print isn't coming until next year I believe.  I see a sell off coming first, and then another ramp job into January-February of 2011.

Reinhardt posted this picture on his site a few days ago, and all though he's not telling you what it means, I have my own ideas to the message it's sending.  To me it means that the bottom will be around the date in the Wallstreet sign, and the top will be around the Legatus sign.

It should line up with the charts too, as a big sell off from now to mid-November, followed by a rally into late January could fulfill the downside FP and the upside FP too.  After that happens... well, who knows?  Either the market will rally up to Dow 38,000 (as Mahendra forecasts) with massive inflation (that will $20.00 for that Big Mac sir, and for only $5.00 more you can add a small fry with that).

Or... the Great Depression Two begins and the market crashes all year long with Dow 2000-3000 being the downside target area.  Which one will it be?  I don't know, but either one spells disaster for the average person.  I can't afford a loaf of bread that cost $10.00 anymore then the effects a crash like that would cause.  Can you imagine how many more people lose their jobs and become homeless?  Talk about a skyrocketing crime rate!

Both cases are extremely bad, and I wish neither of them would happen.  Maybe they won't?  I really don't know?  But if I were a gangster, I'd crash the market, create massive unemployment, start WW3 and kill off a large percentage of those unemployed.  And let's not forget to buy up every asset you can get your hands on, for pennies on the dollar.  It's basically just robbery... and you know that's probably what they plan too do.  But will they succeed?

Moving on...

What are the charts saying for next week?  The short term charts put in a bull flag on Friday, which means a move up should happen on Monday morning.  But will it?  If it does, I don't think it will go very far, as the weekly put in a reversal candle pattern, and so did the daily chart.

I really can't see this market ending next week up, as it's up against heavy overhead resistance too.  I won't say it's impossible, as we bears know all too well how this market can stay overbought longer then anyone ever expected it too.  The manipulation in the market is at extremely levels now, and with the election less then 2 weeks away, I wouldn't put anything past the gangsters.

If they really want it higher, they will make it happen.  But, I think they are planning for a sell off, as those 2 charts from Cobra's blog show you their really intentions... not what B.S. is being spewed out of their mouths by the bought and paid for media outlets.

With that said, I do believe we will see some selling next week.  How much is unknown, but all the flash crashes we've been having lately might be early warnings of what's too come.  Just keep on the look out for some false flag event to be blamed on the crash, should it be a "crash"... and not just a correction?  It's impossible to know what they have planned of course, but at least a pullback is highly likely next week.  Anything more then that is just a gift for the bears.

Good luck everyone...

Red

79 COMMENTS

  1. Great Video Red and I think it makes sense, Christmas rally after a short term low in the markets. Thanks for your hard work and efforts. Best regards, PZY5T0.

  2. Using raw data from here

    http://www.realtor.org/research/research/ehsdata

    I noticed an interesting trend — the rich get richer, the middle class and poor get chased out of their houses at low prices.

    The richest home buyers were the only segment that saw year over year gains. The rich get richer. Are they smart? Locking their money into hard “assets”, or just stupid because they don’t see just how bad things are? Time will tell, but in reality a house is a highly illiquid investment that could easily fall 50% from here.

    Check it out – orig chart by Hawaii Trading

    http://oahutrading.blogspot.com/

  3. Well things started to move upwards during the Bernanke speech at 9.30 following that existing home sales turned in a way better number.

    Previous 4.12 M
    Forecast 4.25 M
    Actual 4.53 M

    Overall since the closing bell on friday which had the DJ30 at 11090 till just now there was a strong run coming in from asia and london side which topped out at about 11180.Not surprising that they tested that level again.

  4. Oh and i forgot to mention that there will be POMO on 25th 26th 27th AND 28th which basically means that they are doing everything to float the market all the way till the eleactions

  5. Looks like there’s still a buyer’s strike and the indices are following the dollar like lemmings. If I were Trichet, I would lock the EUR/USD at $1.30 for just one day to show all naysayers what a BS rally this has been.

  6. Watching some forex trades, looks like someone is really trying to beat the dollar down while it rises. Someone is paying over the ask price for Euros in many trades, but it only seems to be having a limited effect. Talk about desperation. What a bunch of scumbags.

    “Your tax dollars at work”.

  7. Yeah, when EUR/USD went negative for a brief time, it was flashing/bouncing between -0.0005 and +0.0040 or so for a few minutes. I guess desperation kicked in and they did some serious pumping for a while to keep the Euro propped up.

  8. The last gap fill from last April rejected at the close, dollar down, VIX up,SPX up but a bearish shooting star all that on Mutual Fund Monday. The ” buy the dip” didn’t work well either, something we have not seen often for the past 6 weeks. Did we witness an exhaustion gap?POMO day tomorrow and it should tell us a lot about what is left in this bull rally.

  9. This day reminds me of June 21st when the stock indices gapped up at the open to near their highs of the day and then sold off. (dropped below the opening gap) following several days of dojis. The difference is today did not end negative although the financials did.
    So I did some referenceing to June 21st and it is 4months 4days ago. And 88 trading days later is today. Its 126calendar days from that day also. 126 doesn’t pop us as anything special but the others work. Of course 88 a prime Social Network number. Tomorrow 10-26 will be 6 months from the April high. Today should be 3288 days from 10-24-01 date from Incubus’ Warning video if my math is correct (sorry didn’t count the days)(the video is from 2002 but the album was released on 10-23-01).
    Nice gravestone dojis also today. Gap up ones at that.
    I have another magnus opus in the works but off to the blogosphere for some reading.

  10. Just noticed its 588 or (32)88 calendar days. My magnus opus will discuss how 58 is the crash number. Maybe I should count the number of days.

  11. Big rejection off the high. Time for negative divergences to manifest themselves. Looking for some selling pressures for the next few days…………..

  12. As I have mentioned 58 is the crash number. 58 years separated 1929 1987 crashes (29 =1/2 58). The Dow dropped 508 pts on October 19, 1987 while the SP dropped (5)7.(8)6 pts or nearly 58 to 224.83. The Dow closed at 112(58).01 at its April high. Today’s Dow nearly got to that high and printed 11247.6 at its high. Subtract the October 19,1987 close of 1738.74 from 11247.6 and the result is 10508.96. Today SP closed at 11(85).62 (it also has the 56 and 11 in there also). The high of the day for the SP was 1196.14 (96 and 14 or 77 in there also—96 another prominent number lately—check Cramer’s today—-he has 19 69 on his scoreboard today–an 911,29,56 all embedded in the numbers there 10-25on top/1969 below:

    or
    10 25
    19 69
    Anyway, I am digressing…….Today’s SP high 1196.14 minus July 1’low of 1010.91======1(85).23….What a number……..Last week was 85 weeks from the March 2009 low and 158 weeks from October 2007 highs.
    There also some other crash numbers to keep an eye on. 22,47 or 74. The SP October 19,1987 crash close was 224.83. The Dow was 1738.74…Add 508 pts lost that day to the Dow’s close and the number is 2246.74 (SPY flash crash dropped to 106.46 last Monday and the Dollar Index flash crashed to 74.6 late Friday—as I have mentioned 46 is another key number) There 47 trading days down from theApril high to the July low. Dow transports made a new high today at 4774.86. The previous high on April 26 (actually it went higher on May 3) was 47(56).35. Subtracting SPs 1987 crash close of 224.83 from its April 26 close of 1212.05=======1087.22 (10-87!!) That in itself makes me believe that that number will not be exceeded.
    Subtracting today’s dow close from its April high=====93.96….Remember the major 3-6-9 low!!! Today’s Dow close has all the requisite numbers 11164.05…..111 +64 a key Cramer/Social Network/Wall Street code number plus 8×8….and an embedded 56 as well as .05 like the SP had at its April high close (1212.05)( Wall Street 2 flashed 1266.5 for the SP constantly through the movie no matter what the date)……….Yesterday was 744calendar days from the October 10,2008 financial crisis lows…..747 would be the next date to look for….although I can see a case for 746 since the dollar dropped there on Friday….Notice the dollar is currently at 77 another prominent number lately and an especially favorite one in Wall Street 2 (I haven’t mentioned this before but there is a scene near the end of the movie where the characters stand in front of a door with the number 14 on it—-I have noticed a commercial where a bungee jumper has the number 14 on his helmet)
    Last Thursday’s NL playoff game didn’t feature a promo with 56 in it like the day before but I saw a football promo featuring Matt Forte #22 (the next day was the 22nd). It didn’t mean anything to me really until I realized that Forte is a Chicago BEAR!!!! That was the featured game for the network as they had their number one broadcast team involved and I believe the score was 17-14 Redskins if that means anything with the Bears quarterback throwing 4 picks. (to the same DB—Yahoo has a featured story on it—maybe I should find Hall’s number)

  13. Interesting article. Nothing new, but finally beginning to see light:

    http://www.cnbc.com/id/39829555

    Obviously, CNBC is setting itself up for what is going to happen next. I guess we can expect nothing less from “I Forgot To Pay My Taxes” Geithner. Oops, I forgot. He paid his taxes after getting caught.

  14. Hall’s #==23,,Bears QB Cutler #6—–In tonight’s Monday Night Game, #88s scored 5 touchdowns. The last 2 by the Cowboy’s 88(a rookie) so fake as they occurred in garbage time and the Giants defense did the parting of the seas on the last one. So the 58 number again ie 5×88 which is 440. (See below as in 4 months 4 days ago was the summer solstice high) The network had a still shot style promo featuring Giants #44 and #10 (manning—don’t know how his 10 fits in—-44 the starting running back). The Russell 2000’s high today was 714 and it closed at 707. qqqqs closed at (5)1.(8)9

  15. What a snooze fest today! More of the same old B.S. it seems. Let’s keep pumping half dead crack head bull until he finally dies, and then we’ll give him the “T virus” and make him a zombie bull.

  16. Very close to a dollar breakout signal( 78.25) and it already started its move but we could also get that final rally and completes 5th wave up of ending diagonal from August low. If the dollar breaks out the market is cooked and the rally is done. Interesting time ahead!

  17. Some more strangeness:: The San Francisco Giants advanced to the World Series last week. Their first season in San Francisco was 19(58). They were created in 1883 and won their first NL pennant and overall championship in 1888 (followed by another one 1889). Their last World Series appearance was in 2002, 8 years ago. The New York Giants who were featured in last nights Monday Night Game were created in 1925, 85 years ago. As I have mentioned #88s scored 5 touchdowns in that game and the Giants scored 41 (41-35)pts. The Cowboys starting quarterback Tony Romo was knocked out of the game. According to his twitter account http://www.twitter.com/kevindepew ,he received a phone call from an ESPN producer to not play Aaron Rodgers in his fantasy league.(see October 19 postings on twitter) Well Rodgers was featured in Sunday Nights game on NBC. Espn broadcast Monday nights game featuring the Giants-Cowboys.
    Tomorrow Oct 27 and the following day Oct 28 were the primary crash days in 1929 81 years ago. Today is 81 trading days from the June 21 high. It should be 127 calendar days to that day also. (127 years ago the baseball Giants were founded). I’ll have more later.

  18. You just can’t make this stuff up. Opening night for the triumphant triumvurant and they weren’t so triumphant. Celtics win 88-80 (over the Heat). I caught the score with 27 seconds left at 86 80 and thought that this game will end at 88-80. Another sign that the time is near. Opening night for our hallowed Heat.

  19. Today is also 5months 6days from the 5-20 ticker tape video featured on Cramer’s show on 05-26 ie 58 with all the 1987/29, pi,56 numbers. It is 1111 calendar days and 767 trading days from the October 2007 high. And I have an intermediate strength level cycle due today which I had nearly forgotten about with my focus on all these esoteric cycles.

  20. loosing time….all your numbers are a waste of feedback trading…..its fun to read but maybe it would be better to post it in other blogs…

  21. My next setup has 2-Nov, spx 1202.

    Do like the idea of election day peak. Republicans win, market goes down “government divided, nothing will get passed”. Dems win, marekt goes down “nothing has changed”.

  22. You got it.

    Hey it’s another miracle on Wall Street! The market never goes down! In fact, it’s completely ignoring the dollar again, much like it did in early May.

  23. wow…. I love these gangstahs…..this market is going to the moon..thanks to the gangstahs with the printing machines lol

  24. The guys over at Mr. TopStep still think 1250 spx by the end of the year, or early next year. That lines up with my DIA FP level, (about 1260-1280), so that’s where the moon is located.

  25. I don’t even know why the Financial Advisory industry is even relevant any more. If the Fed is never going to let the market go down, why does anyone need advice? Just buy anything and it will keep going up. Why does anyone need to pay any advisory fees?

    Be it gold, stock, anything, just buy it and the Fed will print as much money as it needs to in order to inflate the US out of any possible crisis.

    Never mind the fact that a gallon of milk will cost twice as much next month, but at least your stocks didn’t go down!

  26. Sell into strength, buy the dips still the mantra. Buying off the 10dma still a great trade. Seasonal bullishness the next 2 days…………….Stay nimble………..

  27. XLK – Technology Select Sector SPDR Fund – One big options market participant traded a total of 524,600 put options on the technology SPDR ETF this afternoon. It looks like the party responsible for the massive transactions rolled a previously established debit put spread in the December contract forward to the longer-dated March 2011 contract. Shares of the XLK, an exchange-traded fund that mirrors the performance of the Technology Select Sector of the S&P 500 Index

  28. Could be just a hedge… or could be a bet on a big move down? Hard too say, as we don’t know who made the bet? It seems like a lot of puts too me, but it could be chump change to who ever made it. How much did it put cost? Times that by the about of puts rolled to see if it’s really a lot of money or not?

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