Countdown To The August 2nd Debt Ceiling Vote

Wednesday Update...

(to watch on youtube: http://www.youtube.com/watch?v=R1eSFaegoSw )

Red

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The stock market could be volatile next week, as uncertainty about the passing of raising the debt ceiling still lingers.

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

We've been told by Lindsey Williams that the gangster elite cabal will default on the debt, but that doesn't mean they won't raise the debt ceiling on August 2nd.  Both can happen, as they could raise the debt ceiling but decide not to pay on any debt holders outside of the US... specifically, they are going to default on paying the largest holder China!

Another person named Michael Ruppert sees the US just flat out defaulting on its' debt this coming August 2nd.  While it's uncertain exactly what will happen, the charts are looking very toppy too me right now.  Since nothing has been reached as of this Sunday afternoon, the Asia markets aren't likely to get too excited tonight and rally on like it doesn't affect them.  If they sell off anything serious, you can expect it to carry over the the US markets Monday morning.

While I'm still not sure if the top is in, or if we will go up and make a new high before the August 2nd deadline, we should at least sell off some on Monday and Tuesday to work off the extremely overbought conditions on all the short term charts right now.  It really depends on what is said about the debt ceiling... or what is "not said".  Uncertainly will lead to violent swings, and I definitely see that coming next week.

However, thinking like a gangster (and looking hard at the weekly chart) I still think we will put in a new high before collapsing on August 2nd (or the July 30th turn date?).  That weekly chart looks like it wants to push up more before rolling back down again.  Plus, the daily chart is still pushing up on the Full Stochastic  and I don't think it's ready to rollover just yet.

An 'ABC' up move is still in the cards, with the A wave likely ending on Friday, and B down to start this Monday.   If it ends on Tuesday (or early Wednesday)... with some good news announcement about the debt issue (planned, scripted, timed, and staged of course), then we should see a big rally up to make our C wave.  If that happens, then we should expect a new high to be put in... possibly our FP of SPY 138.86?

Then the unthinkable occurs on August 2nd, 2011...

The deal that they thought was sealed (which caused the C wave up) falls apart and the debt ceiling isn't raised... causing the stock market to tank hard!  This also should cause a crash in the dollar as when the debt of certain "dollar holders" (like China) is defaulted on, no country will want to hold them.  Whether it happens like this is just speculation of course...

But, eventually the dollar will collapse regardless, as it is already planned to happen by the Evil Reptilian Illuminati Gangster Elite Cabal... (wow, what a long name for those thugs!)  What will likely happen is that they will be forced to add another stimulus package to pay the debt here in America (like Social Security, Medicare, Pensions, etc...), which many more printing of the dollar... hence it will be worth less, and collapse back down.

Once the dollar breaks through the 72 level of support, it will fall like a rock and likely take the stock market down with it!  "But don't the dollar and the stock market trade opposite of each other... you ask?".  Yes they do... for now! But I believe that at some point in the future, they will trade in sync with each other.  Meaning, when the dollar falls, so does the market... and when it rises, so does the market.

Why you ask?  Simple really... right now investors look at a weaker dollar as positive for American companies that sell goods and services to other countries.  This results in high profits for those companies, which means better earnings, and a rising stock price.  That well remain true until the dollar hits a level that cause fear into investors because of inflation rising.

Those higher profits on a weaker dollar won't mean much if American's can't afford to feed themselves or drive to work because of hyper-inflation that's coming!

Meaning, a weak dollar will cause weak profits in American companies because people will be too poor to buy anything anymore.  Therefore, earnings will fall, and so will the stock prices of those companies.  Who will be able to afford an iPad when they can't pay their electric bill?  The crap will hit the fan, as companies start laying off more people because of low sells... which leads to lower sells as those people that are now unemployed will stop buying goods and services too!  It's a vicious cycle that will cause the Great Depression Two!

To get an idea of what will happen, you have too go back and look at the fake documentary the Illuminati made called "Oil Storm".  (Download it here: http://reddragonleo.com/OilStorm.avi)  They made this movie shortly before they (George H. Bush, George W. Bush, David Rockefeller, Jay Rockefeller, Henry Kissinger, Bill and Hillary Clinton, Dick Cheney, George Soros, Warren Buffet, etc... most of which are Reptilian Shape Shifters) attacked New Orleans by creating Katrina with their HAARP weather weapon.

You need to re-watch the movie and pay attention to what hasn't happened yet... like the woman freezing to death in her apartment because she can't pay the electric bill.  This is because of the death of the dollar, where hyper-inflation makes people's $500-$1,000 per month social security check only capable of buying half as much as it did just a few years ago.  Yes, the government will still pay the people their welfare, social security, and pension checks (I think they will?), but each dollar will be worth so much less that it won't be enough to pay the bills people have.  Many older people will die from freezing to death in a really bad weather, or from starving because they can afford to eat.

Let's also not forget about their medicine that they won't be able to afford as medicare and medicaid will make cut backs where they will stop paying for certain prescriptions.  Make no mistake about it... this is the evil plan that the Illuminati Reptilian Gangsters have planned for a long time, and they intend to make it happen.

On another note, Ben Fulford seems to know the order of defaults coming...

While you certainly can trade off of what Benjamin Fulford tells us, it's still great information to know.  He does tend to assign dates for stuff happening, and they rarely are accurate.  I'm sure this is the Illuminati's way of trying to discredit Ben, as they change there dates when he discovers one and announces it to his readers.  This is actually a good thing, as it means that they can be stopped.  If enough people discover their plans ahead of time, they will be forced to change them.

Lindsey Williams stated that too many people are waking up to the enslavement that the Illuminati Reptilians have had them in for 4,000 plus years, and that it's forced them to back down from their plan to raise oil prices to $200.00 per barrel.  They apparently pushed that off until next year, but I suspect it will be an overnight surge in oil by some false flag attack they stage, as trying to rise the price up slowly isn't working too well for them right now.

Anyway, back to Ben Fulford and his latest...

The gangsters are still losing their grip slowly but surely as their money supply is still cut off by the White Dragon Society (the good guys).  According to Ben, there is more then enough money out there in the world to rescue all the countries facing default, but that money won't be used until the gangster cabal is removed from power once and for all.  This means that the gangsters will certainly default at some point soon, as they can't keep this ponzi scheme going without access to more money... which the currently don't have.

Ben sees the defaults coming in the following order... Greece, Ireland, The Baltic States, Spain, Italy, France and finally The United States.  Between now and the end of the year is certainly going to be a very scary time of our lives it seems.  Some good news seems to be the fact that the Evil Illuminati Reptilian Gangsters have backed off from their attacks on the New Madrid fault line (using HAARP) here in the Mississippi River area in America.

They also backed off from their attacks on Mt. Fuji in Japan, which they were trying to get to explode (using HAARP again) sinking Japan into the ocean for sure.  The Japanese people are one of the few that have stood up to the Evil Cabal, and risked everything to do it.  They have been attack by these piece of crap scumbag lizards for doing so... which makes my blood boil with anger toward these murdering bastards!  In my book, the people of Japan are hero's!

However, let's not lose track of the facts...

The Illuminati are still in control right now, as evidence clearly says so.  The recent April 30th to May 1st Legatus Gangster meeting was the top in the market and a major turning point for it.  I still believe that the next Legatus Illuminati Reptilian meeting will be the top of the market too, with what I speculate to be a Major Wave 2 up ending just before the week of October the 23rd... the last day the gangster meet.

That also works well with the charts right now, (assuming the August 2nd date is our turn date to start Major Wave 1 down... which should go well into late September I believe).  Then rally up into late October (fooling a lot of bears that will assume that October will be down as much as September and/or August... which it still could be, but after October 23rd).

But, if the gangster truly do lose control of the stock market, then who knows what will happen?  Maybe the good guys will rescue the economy with all that money they have waiting to help us (which they will only use once humanity is freed from the Reptilian Bush, Clinton, Cheney, Rockefeller, etc... gang), and the market will rally!  If so, then we should see the public arrest of these people for murder... but I doubt if that will happen between now and the end of the year.

So, that leads me to believe that they will still retain control of the stock market and that the planned crash will still happen at the end of the next Legatus meeting this October 23rd, 2011.  Between now and then we should see the start and conclusion of Major Wave 1 down and 2 up.... which both should be very profitable if you can figure out the bottom and top of each wave?

I'll try of course, but I'll need your help.  I'm sure they will start putting out multiple FP's as to where they plan to take the market too... so keep your eye's out for them, and post them here on the blog (or email them too me, and I'll post them for you).

On to the short term charts...

The 2 hour, 60 minute, 30 minute, and 15 minute charts all show a rising wedge that should breakdown soon.  While it could be argued that the charts put in a bull flag on Friday (which would lead to another move up on Monday), I'm not so sure on that call?  It looks like a failed bull flag too me, which means it's free to gap down on Monday to break the rising wedge.  Will it?  I guess that depends on how the overseas markets react to no agreement being reached on the debt ceiling over the weekend, and how much of that spills over into the US markets?

Personally, I think we will gap down on Monday, but that's just a feeling and not something I see in the charts.  The daily chart is still going up and could rollover at anytime now, while the weekly argues for another positive close by next Friday.  Of course that doesn't mean we can't go down first, and then rally later in the week.  And the weekly is also coming up on resistance on the Full Stochastic, which also are hooking over right now.  This leads me to believe that this will be the final up week before the selling starts.

Let's also not forget the New Moon is this July the 30th, a Saturday... which has been a pretty accurate turn date indicator (+/- 3 days) over the last several months.  No matter what the government gangsters say about on August the 2nd, I see a big turn coming.  Will it be an "up move" or a "down move"... that is the question?  Assuming the market doesn't crash this coming week and only puts in a "B wave down", I'd expect the move going into the turn date to be a final up move... meaning that the move after the turn date would be down.

Adding it all up, I'm sticking to my guns that we will see an ABC move up into our turn date window, followed by a big sell off in August.  As for the FP on the SPY of 138.86... it's a target, but not a guarantee, as it's an old print and could have been changed by now?  I'm only focusing on the time period, and not specifically the price level.  We shall see I guess...

Good luck as always,

Red

Author: Red