Countdown To The August 2nd Debt Ceiling Vote

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Wednesday Update...

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

Red

_______________________________________________________

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

 

3406 COMMENTS

  1. i’m pretty happy with the way my overnight index chart signals, have been lining up, and predicting the next move, which on friday, they said big down tend day coming, within 48 hours, but actually heavily favored the move to happen on Monday. dow futures down 111… bingo!
    they give both weak and strong signals. i’ll let you know when the next strong signal shows up.

    • That would be a wise thing to do, if the people elected actually cared about the public… but they don’t.  They will do what’s best for them… nothing, and then lie about how they supported the pension fund, and voted against cutting funding to it.  It’s all just a game they play, where they make their decisions based on always having an “out”, or back door to say they didn’t support tax increases, but they really do.  They are all lying gangsters, only looking to get re-elected for the next term.

  2. HEY RED, The vix’s 20,50 and 200 day moving avg are all meeting on the daily. Haven’t seen this in a while. Collapse possible? Whats your thoughts.

    • When they all met together like that it usually means a big move is coming.  Since they are currently below the price level today they will act as a necktie of support.  I’d say this market is going to tank around that August 2nd deadline date.  The charts say it will, regardless of what is said or done about the debt issue.

  3. Ascending Triangle of Dow Jones: http://niftychartsandpatterns.blogspot.com/2011/07/ascending-triangle-of-dow-jones.html

  4.  Even though the market pulled back early this morning, and came back positive, i’m still left with short the indexes signals, at this mid morning high.
    however, i don’t have as favorable a VIX reading, as I did yesterday, to support another down trend day/ opening

  5. Indexes holding in there relatively well (Nasdaq close to highs of the day) with everyone freaking out about the debt ceiling; looking a little deeper you have low float from a sector perspective today and even though not much of a move the two defensive sectors leading and lagging the market (XLU up +0.6% and Consumer Staples -0.7%); http://rocsinvestmentaccount.webs.com/

  6. qqq is going down tuesday—i had really good buy signal on QID. still do, even at the close. major buy signal on the QID, for an overnight trade.

  7. so by this guy’s reckoning Nasdaq today went over 2428, so we now on our way up the highest highs ever this year ??

  8. or is that a closing price above 2428, in which case today on my chart Nasdaq closed below this ??

  9. i thought the mayor was supposed to fix all the pot holes. 
    i’m afraid that my QID go long overnight chart, hit a BRCM,BIDU temporary road bump.
    maybe the president’s 9pm speech will save me.

  10. I’m back… had stuff to do this morning gang, sorry about that.  I never did a video last night because I just don’t see the point right now.  They are going to hold this market in a tight range until the debt ceiling deadline it looks like.  Not much to say… we are either going to rally up and make all time new highs, or crash and burn.

  11. AKS missed by 19 cents, which is a 19% hit on yearly eps,  this should
    turn into a falling knife, support is 13 or at 12.5 or so 

    • I’m not sure either way right now Robert.  This is a very high stakes game they are playing with the debt ceiling issue, and I’m not confident that they won’t just default.  Scary times we live in right now.  Remember this… the gangsters want a default so they can steal all the assets at dirt cheap prices.

      • Madman Ben has it dialed in. Kill the dollar & rally. When the debt ceiling crap is done, pump the dollar and the market rallies again while commodities fail. I don’t know about tomorrow though. Possible?

        • Well, I’m clueless about tomorrow too?  I’m not even bothering to do a video, because I don’t know what to say?  Nothing major seems too be planned until after the debt ceiling is over with.

          • Pretty much a holding pattern yes. Criminals are probably selling in order to position themselves to pump & dump when the deal finally goes thru. The cartel has finally assumed total control of the market by disallowing a Greek default. I’ll have to think of the best strategery for this because having the power to control who defaults changes the whole game in a very big way. Foreign equities & commodities seem to stick to the fundamentals fairly well. US stocks consistently making what I call “Lowered To Beat” (LTB) earnings while Euro stocks consistently missing earnings.

            BTW I like your new site, but will probably post here most of the time and maybe blast a few posts in the chat room time to time.

  12. Red
    I Have a very uneasy feeling. I have followed the words of Lindsy Williams. He has proven himself to be a reliable source of information and people have learnt to trust in what he says. We can all see the proof of what he has told us in the past.
    I have just one little problem with this; The NWO have committed their lives to their endeavour and there is documented proof that this has been a long held belief that goes back many generations through the leading families. Why would they feed and develop a trusted spokesperson unless they wanted to ultimately dis-inform.
    I believe I have recognised the bad advice. In Lindsy Williams most recent interview 7-26-11, I do not doubt what he says is about to happen, with one exception, I cannot believe that the NWO do not want rioting. This has to be nonsense, Public disorder will allow the administration to increase control, institute Marshall law and give them the excuse to use all of those lovely FEMA camps.
    We are in the the final throws and a lot will depend upon how we respond, Rioting is not the answer, civil disobedience and non aggressive public demonstration will inform and educate the sheepal without fanning the flames.
    We have to dig our heels in and say no. By simply refusing to become slaves we will free our selves from their reality.

    • Sorry for the late respond….

      Yes, the Illuminati Gangsters are using Lindsey Williams for their benefit… so they think.  They feed him the information they want put out there to the masses, and “yes” they do want rioting, so they can have Marshall Law, and throw all of us sheep in FEMA Prison Camps.

      But, Lindsey isn’t stupid and I believe he knows that they only give him what they want told to the public.  It’s important to note how Lindsey delivers the message, as he clearly states that violence isn’t the answer.  Lindsey knows what they want, but he preaches the opposite.

      I’d say that Gerard Celente is promoting rioting… without even realizing that’s what the gangsters want, while Lindsey is focusing peoples’ attention simply protecting themselves and not scumming to the plans the Illuminati want.

      • Thanks for the respond, I’m relatively new to this alternative view point and its cast of players and as such the points your raise in Lindsey’s defence are not immediately apparent. It concerns me that when the situation really melts down the majority view will be completely confused. where will the people go for their information, they not going to trust the media any more and they will not have time to learn the people they can trust or read between the lines of what is being said. By the way with regard to stocks, if we are trading the crash and make a profit will we be able to actually cash in our chips? All the best, I really enjoy your work and your resources. I have learnt a lot not only about the truth but about myself. Keep up the good work, its appreciatedpete

        a1upsticks@yahoo.co.uk

        tel 07940 390040

  13. ES Testing 200 Hour moving average: http://niftychartsandpatterns.blogspot.com/2011/07/es-testing-200-hour-moving-average.html

  14. NFLX cloud and Trend line analysis: http://niftychartsandpatterns.blogspot.com/2011/07/nflx-cloud-and-trend-line-analysis.html

  15. Trading idea: buy X.Opened at 39.89 on 7/27/11.
    Trading idea: buy CY.Opened at 20.12 on 7/27/11.
    Trading idea: buy COF.Opened at 47.85 on 7/27/11.
    Trading idea: buy DIA.Opened at 123.06 on 7/27/11.
    Trading idea: short TWM.Opened at 43.65 on 7/27/11. 

  16. the QID signal finally played out today. my chart said a big down day was coming, 2 or 3 days ago. now the charts don’t show any edge either way. i  bought the dipster stocks today. too many of them available, to get them all

  17. S&P 500 Analysis after closing bell: http://niftychartsandpatterns.blogspot.com/2011/07/s-500-analysis-after-closing-bell_28.html

      • We could have a one day bounce tomorrow (not big, but a positive close at least), and then more selling on Friday.  Or, we could bounce into August 2nd?  I’m not sure which, (as I explain in the video update I’m processing right now), but I’m leaning toward a one day bounce and then back down on Friday.

        • I was thinking that too. Maybe a bounce just above the 50 DMA, then a break right back thru it. Maybe there’s no arm connected to this right shoulder, BWAHAHAAHA!!!

          • Yes, a move below that major support area around 1296 is very bearish (as I went over in the new video I did), but I think it will bounce from there tomorrow and rally a bit.  However, it could be just a “one day wonder” and head back down on Friday.

            With the tick below 1,000 it’s in “crash territory”… so any bounces should be sold in my opinion.

  18. here’s what the bulls got to worry about, big time. i have a go long signal the vix at 19.50. on my overnight charts.  i tell you, my  overnight charts of late, have been out playing the trading robots, and that’s a good thing.

    the vix at 19.50, that to me, is a dangerous price for the bulls, next few days

     

    • The should peak today on the histogram bars of the 60 minute chart and roll back down tomorrow I believe.  It appears too be moving up too fast, and doesn’t look like a bottom too me.  I think we will sell back off on Friday.

  19. GOOG Pausing at the resistance line: http://niftychartsandpatterns.blogspot.com/2011/07/google-pausing-at-resistance-line.html

  20. It’s not looking good for tomorrow gang.  The only wildcard is if the resolve the vote today… which isn’t likely it seems.  The children are still fighting each other in congress.

  21. SPX Analysis after closing bell: http://niftychartsandpatterns.blogspot.com/2011/07/s-500-analysis-after-closing-bell_29.html

    • Why do I say what… that the market will tank tomorrow if they don’t resolve the debt issue?  That’s because the short term charts worked off most of their over sold conditions and can roll back down again for another leg.  It doesn’t mean they will, only that they could easily sell off again.

      The daily is pointing down, the 30 and 15 are pointing down… only the 60 is neutral and could go either way.  Overall, I don’t see anything bullish for the morning session.  Maybe it only drops in the morning and recovers in the afternoon, but it’s not a bullish looking chart by any measure right now.

      While I’m sure we are going to have a decent multiday bounce at some point, I wouldn’t go long today.

        • Bunch of prints slightly higher than close. Maybe Bad GDP, pass vote euphoria, open up and tank?

          • I have a feeling we get a fake bounce off the 200 DMA, then punch down right thru it sometime next week.

          • Remember, this August 30th is a turn date (New Moon)… so we could have a multi-day bounce next week.  But tomorrow needs to have an exhaustion move to the downside.  So far, it went as expected… up too fast, and sold back down.

          • Yeah, what a retracement to the last rally. 100% so far and counting. You know, these HFT patterns are really pissing me off. The rally into 7/7 – and subsequent failures – look very similar to the situation into and after 5/1. Now that I think of it, very similar to the rally into the end of February.

            Damn HFTs. ES just bounced off 1283…yowsa!

          • After a flush out move to the downside tomorrow morning, I do expect a reversal to start and continue into early next week.  So, I’ll be exiting my shorts tomorrow morning most likely.

  22. i will have really great go long overnight signals, if the qqq drops 2% from today’s close. otherwise, my overnight charts saying neutral.
    another signal i’m using is SKF—if that get to 68 retest, i’m going long
    (any) bank.

  23.  if you look hard at GDX:GLD 36, support at 35. it looks like XAU will
    find support at a fib line, no retest of 187, is indicated

  24. Although I’m a mega-bear, I think we get a pop on Monday.   How far it goes is to be determined.  If anything, today was setup to be a big down day and we didn’t get it.   All of the indices got down to their lower BBs but most are too far extended from their 10 and 20 day averages and $ndx 20 day average is still flattening.   60 min RSIs and MACDs are at rock bottom area.   I  think the indices need to shoot back to their 10 and 20 day averages and allow the BBs to flare wider open particularly the $ndx.  It looks like 5 waves down from last week’s highs.

    In 2000, following the double solar eclipses surrounding a total lunar eclipse, there was a rally into the next moon when the market basically topped out on the first day of September following it before commencing the big decline.

    We might have to wait for a certain planet to go retro.

    • I’m thinking just the opposite Geccko… more like a gap down, not a rally.  The market had it’s chance to rally today and it failed.  This is going to get ugly I’m afraid.

  25. The market had it’s chance today to crash and the bears blew it. The Mclellen Oscillater is in the 80’s and that spells gap up Monday and rally time. Crash won’t come for awhile till we get the downgrade. g.l. Red

      • The big surprise to me was Madman Ben’s XXX hard pump action at the beginning of the day to push the indices away from the evil 200 DMA. Luckily, I was on the sidelines at that point. And still.

          • Like you said, they might fool us all. Nevertheless, it’s getting pretty exciting. VIX is getting pretty hard core, that is, compared to recent complacency…

          • Expect the unexpected I say.  What does everyone expect next week?  Answer:  A rally from the debt ceiling bill being passed.  What if it doesn’t?  I don’t think everyone thinks that the US can really default… which is what must happen.  Maybe not next week, but it’s coming.

  26. 5:39 update 
     
    Here’s the outline of the debt ceiling deal as of now, according to officials on both sides: 
     
    * $900 billion in the first stage of deficit reduction. 
     
    *
    $1.5 trillion in second stage of deficit reduction to be defined by a
    bipartisan special committee of lawmakers appointed by leaders of the
    House and Senate. 
     
    * If the special committee fails to deliver a
    deficit-cutting package that would trigger $1.2 trillion in cuts, half
    would be Defense cuts and the other half would be non-Defense cuts,
    exempting low-income programs Social Security and Medicaid, and only
    impacting providers in Medicare. 
     
    * The debt ceiling increase
    would be done in three phases: $400 billion initially; another $500
    billion later thise year would be subject to a vote of disapproval; a
    third increase of $1.5 to get the rest through 2012 and would also be
    subject to vote of disapproval. 
     
    * There is also a provision to have Congress vote on balanced budget amendment. 
     
    *
    The special committee would not necessarily tackle tax reform. But Mr.
    Obama is threatening to veto any extension of the Bush-era tax cuts for
    those making $250,000 a year or more unless Congress acts on an overhaul
    of the tax code.

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