The Worst Thanksgiving Week In The Stock Market Since 1932…

Wednesday Update...

(to watch on youtube: http://www.youtube.com/watch?v=z3dya37MEu0)

Red

_____________________________________________________

And it's not over with yet, as I still fully expect a stock market crash this coming Tuesday November 29th, 2011...

Part ONE...

(to watch on youtube: http://www.youtube.com/watch?v=B2YAzs4ZEc4)

Part TWO...

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

Will this time be different?  Did we put the bottom in on the stock market sell off last Friday, or do we have another huge sell off coming early this week?  Everything I see tells me that Tuesday is going to be a very very ugly day!  While I'm not sure about what will happen on Monday, but "if" it closes positive then we could be following the same pattern as this past August, where this Monday is equal to the positive close on August 3rd, 2011.  Nothing ever repeats exactly in the stock market, but similar patterns are common.

Notice how many red days there were prior to that date... a total of 7 starting on July 25th.  Then the one day positive close on August 3rd, which was followed by 3 more very large down days, finally bottoming out on the crash date of August 8th, with a huge rebound on the 9th.  Maybe we have something similar this week?  I'm not sure how it's going to play out, but I'm sticking with the 29th as a crash date... mainly because it's another ritual date.  Looking back at history you'll see that the stock market crash of 1929 was on October 29th, and the one in 2008 was on September 29th... is November 29th next?

No one can be 100% positive on this (except the gangsters that control the stock market), as the charts are very, very oversold right now.  A powerful rally from these oversold conditions should start soon, but picking a bottom is near impossible in most cases.  Oversold conditions can simply continue to get more and more oversold.  In fact, most all crashes are from very oversold conditions... which means that the market is ripe for a crash this week.  So, does that mean we crash or not?  I wish I knew for sure, but unfortunately I don't.

But, the rituals are important to these gangsters and letting this important date pass by without a huge down day in the market would certainly surprise me.  While I'm sure that "if" a forecast gets too much attention on the internet they will be forced to change it, some how I don't think my little blog calling for a crash on that date will make them change their evil plans.  Yes, they do have a super computer reading the internet and yes they do factor the sentiment of that data into SkyNet (or HAL 2000, depending on how old you are... LOL), which is simply the name I like to give to the computer controlling and manipulating the stock market up and down all day.  But, I think the plans are already set for the 29th, and whatever I say about it won't matter.

What happens if we crash on 11-29-11?

Depending on how big the crash is of course, I'd say we bounce hard for one to several days.  But I seriously doubt that we put in the low on that date like we did on the August 8th crash.  It's possible but unlikely, as most of the time a "lower low" or at least a "retest" of the low will be needed to call a bottom.  The monthly chart back in August was still in positive territory on the Histogram bars and pointing down.  Now it's in negative territory and still pointing down.  This tells me the down move this time should be much stronger then the previous one in August, which was pretty nasty when you think about it.  This also supports the wave count of the August crash being one large wave one down, and the current move down being a large wave three down.

This would support my thoughts that this coming "crash low" on Tuesday won't be the final low, but only support a few days of rallying before another big move down again.  We might not bottom until December the 7th, the date the Illuminati.org countdown ends on?  How low you ask?  Hard too say for sure, but I have 965 spx as an important area which I think will end this move down.  Then a rally later in December and early January for a "Santa Rally" I'd assume?

What better time to crash the markets then the holidays?  Yes, the gangsters love to trick us sheep and steal our money when we least expect it... which now of course.  Who would have expected such a large move down in the holiday season?  The gangsters would, as that's how they planned it all.  Keep the sheep distracted with stories of how wonderful Black Friday sales are and how we sheep should go spend money we don't have on stuff we don't need at prices to appear super low when compared to the over inflated original price.

Needless to say that I never bought anything during this sales event period, as I'd rather give my hard earned money to those poor bulls in the market during all the short squeezes I've been caught in over the past several years.  Yes, I want to give my money to those in need... the wallstreet gangsters, as I'd hate to see them not be able to afford their cocaine and hooker parties at the hamptons this time of year.  So, I'm going to "go long' (fingers crossed behind my back) on Monday as I just know that the super spy bot reading my posts is going to change the plans now that I've wrote about it,  and NOT crash on Tuesday the 29th! 🙂

Moving on to the short term charts (not that they actually work right now)...

Oversold, oversold, oversold... it's all I can say for the short term.  But, the larger time frame charts like the monthly and weekly aren't even close to being oversold.  They seem to be just getting started in fact.  The weekly histogram bars are about ready to go negative and the MACD's are getting a bearish cross right now.  This makes it hard to believe that the bulls can pull off a positive close on the week chart next week.  The best case will probably be a one day rally on Wednesday if we crash on Tuesday.  Then more selling on Thursday and Friday ending the week deeply in the red.  If might look like the "Flash Crash" week, or worst... one of the weeks in the crash of 2008!  Yeah, it could get really ugly next week.  I'm not sure if Monday will even have much of a chance of closing positive, but I'd sure like to see it happen that way.  That would allow a lot more selling the rest of the week as it would reset the "7 Red Days" in a row count to zero.

I'm sure there is no set rule on how many negative closes you can have in a row before a big bounce, but the higher the number is the harder it will be to close negative again the next day.  But, we are in a "once in a lifetime" period as the last time the charts were truly this bearish was the 1929 crash.  So we should expect some records to be broken here on this crash, which would include more consecutive days down in a row and more extreme reading on all bearish indicator charts.   Looking at only recent periods to compare to will probably fail to give one an accurate reading in this market.  One should compare to that 1929 period in my opinion, and assume that this one will be worst.

There really isn't much I could say about the short term charts that you don't already know.  Every chart from the daily on down to the 5 minute chart is oversold and due for a big bounce.  But, I don't think we'll see much of one as there is still NO capitulation by the bulls yet and NO signs of turning back up on the weekly and monthly charts either.  I don't have a clue about Monday, as it should close positive based on the fact that we've had 7 red closes in row, but again... these are extreme time periods we are currently in right now and we could see 8 days down in a row, or even 9 days if we crash on Tuesday as I expect.  Maybe then we get our bounce on Wednesday to break the cycle and close positive for one day?  Then back to more selling the rest of the week I'd say...

It's a holiday weekend so I'm going to end this post as a "short one" and go back to relating and doing nothing.... which is good for clearing your thoughts and mind out from all the negative influences from time to time.

Happy Crashing Everyone...

Red

Late add...

After I finished the video and speculated that we'd have Monday down and Tuesday down, making the "7 red day" streak turn into 9 days and then a rally on Wednesday, I now see the futures up nicely in this Sunday night.  This means the 7 day streak will likely be broken tomorrow (assuming they can hold these gains and close positive?), which leaves Tuesday for a "possible" slightly higher high at the open, followed by a crash the rest of the day... and down the rest of the week.  Who knows, they might still open up higher on Monday and sell off toward the close and still close in the Red?  No matter, I as still firmly believe any bounces are to be shorted at this point.

Author: Red