Part One:

The Law of Equilibrium

by Ali Firoozi Yasar

(to watch on youtube: http://www.youtube.com/watch?v=3C1RmFxdAhE)

The universe and every phenomenon in it is truly based on “The Law of Equilibrium”.  All opposite forces are balanced, positive and negative, male and female, electricity and Magnetism, etc...  In order to reproduce, all these forces interchange to stimulate a “balanced unity”, seemingly, they appear and disappear again in countless cycles to express their eternity.  All forces are dual, as a matter of fact, “duality” is a mirror.  All forces in the universe are mirrors of each other.  Actually for every single action there is a reaction.  Energy is interchanged between “pairs of opposites” in this dual universe.

I have already stated that all forces in the universe are diatonic.  Music comprises sounds and these sounds are truly the result of “vibration” which is translated into cycles.  The fact that matters is that the “seed sound” of the universe vibrates itself into Do,Re,Mi,Fa,So,La,Ti.

In my previous post, I stated that an octave has a duality as we are truly surrounded by a “dualistic world”.  For instance, if we take the nucleus of an atom as an octave,  the proton and neutron are the duality of the nucleus and it is also true for “Electromagnetic waves” as electricity and magnetism are found  as a duality.   This is actually the state of the universe!  The ascending octave plus the descending one represent the “law of equilibrium” in which all the opposite diatonic forces are balanced, lets take the vibration of Do-48 as an example:

• Do(descending)     48*2=96
• TI                              48*1.875= 90
• La                              48*1.666=80
• So                              48*1.5=72
• Fa                            48*1.333=64
• Mi                            48*1.25=60
• Re                             48*1.125=54
• Do(descending)      48
• Ti                               48*.9375= 45
• La                               48*.8333=40
• S0                               48*.75= 36
• Fa                                48*.666=32
• Mi                               48*.625=30
• Re                                48*.5625=27

Understanding the “Law of Vibration” and musical scales are important to the timing of financial markets.  In fact, all the harmony ratios of the diatonic musical scale define the “growth spiral” of the financial markets.  Note:  The information  I have provided here is so limited and by no means should you base your investment decisions merely on the information presented here as cycles are progressional series just as everything else in nature.  And you are somehow wrong if you suppose that it has to do with the over-rated Fibonacci numbers And ratios.  Actually, the internet is filled with tons of misinformation!

Using the diatonic musical scale and the harmony ratios, I have projected certain major turning points, including  the upcoming  great crash due in may or June!

Below is what my time projections look like in the Dow monthly chart, I have nearly projected every single major turning point!

And, I would like to walk you through the major turning points in the weekly chart, as you can see on the monthly chart that I have already measured both from the high of  April 2010 to the high of May 2011 and from the low of July 2010 to the low of October 2011.  As you know we have 52 weeks between the highs.  Now it is time to do the math using the harmony ratios... so 52 * 1.5=78 weeks, (as I explained in my previous post), “the”musical fifth” is the ratio of 3/2 or the factor 1.5.  it nearly defines the high of September 2012.

Now from the low of July 2010 to the low of October 2011, we have 64 weeks and as I explained in my previous post, if you multiply 64 weeks to 1.5 you will get 96 weeks which defines a major turning point in late August or September.  I suppose the fall of 2013 will be really ugly.  According to the "Underlying Geometry of Harmonics" sometimes the harmonics in the patterns can be  kind of proportional.  For instance, we have 52 weeks from the High of April 2010 to high of May 2011.

And now, it just gets really interesting as I would like to apply the “Law of Equilibrium” in my calculations

In which all the opposites are somehow balanced.  You have alreay noticed that the ratio of "SO" in the descending octave is 0.75.  Actually if you multiply 52 to .75 you will get 39 weeks, which will somehow  define the low of June 2012.  Now if you measure from both the high of March 2012 and to high of September 2012, and the low of June 2012 and to the low of November 2012, you will find that we have 24 weeks between the tops and nearly 24 weeks between the bottoms.  Once again, the harmonics are proportional in the patterns.

But it gets really interesting if you multiply 24 weeks to the musical fifth, 24*1.5=36 weeks!  We may expect a major a turning point (probably a top) in late May or early June.  Now we should realize that these harmonics are not powerful enough to cause a really a major turning point like a major panic decline.  (As you know we have been rallying since March 2009 and now it is time to consider the bigger picture ,so please pay a particular attention to the following monthly chart.)

Also. I see another truning point in late February or possibly early March.  If it is due in early March, it could happen On March the 4th.  The rally we are in now, is quite unhealthy due to the heavy money printing by Fed.  The Stock Market is being flooded by the newly printed currency,which is why we are not in a standard cycle-pattern.  We can not be in this silly run-up now but rather in a sideways chop or a decline into late February or early March.  Of course, it is well-known fact that the market is often manipulated before the major turning points in order to suck in as many sheep (retail traders) as they can.

As you see, we already have 24 weeks between the low of June 2012 and the low of November 2012.  Now if you count 24 weeks from the high of September 2012 you will reach a turning point in late February or early March.  To the best of my knowledge it will not be a major turning point as we have bigger cycles and forces at work.

If the Stock Market were to return to its normal pattern late February or early March would put in a major bottom.  Then we could get back on board on the bullish side, but now all we have to do is wait and watch!  No matter what the direction is you may play it both directions.  The key is to wait for a set-up bar on the weekly chart.  As soon as you have the confirmation jump in!

Moving on...

As you can see we have 77 months between the low of October 2002 and the low of March 2009.  And now based on the “Law of Equilibrium” if you multiply 77 to .666 (the inverse of Fa) you will get 51.282 months.  What does it all mean?  It actually mean we are going to crash, then collapse big time late May or early June.  The down move will continue into early 2017, wiping out  all of the long-term bullish investors, earning the bearish one millions of dollars in profit.  But beware of the market manipulators though! (More on this by Red).

May you profit handsomely,

Feel free to email me your questions...

Ali Firoozi Yasar

afiroozi (at) rocketmail (dot) com.

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Part Two:

Past History With Legatus And Turns In The Stock Market

by Red Dragon Leo

(to watch on youtube: http://www.youtube.com/watch?v=3C1RmFxdAhE)

First off I'd like to say that I'm not the one who put the pieces together concerning turns in the stock market being connected to meeting dates at Legatus events.  That credit goes to Reinhardt over at Enterprise Correction.  He correctly called the 2008 crash months in advance and told everyone the exact date it would start.  He was early by one day!  I'd call that close enough in my book wouldn't you?  Since then he's not posted another "100% sure" comment on his blog relating to anymore Legatus meeting that have followed that September 15th meeting.

However, I've seen him give odd's of "60/40 chance" once and even once a "70% chance"... which if I recall were "NOT" calls for another crash but simply a correction.  If I remember correctly the 60/40 call was based on some event happening (or not happening) which would then either raise the odds to 100% or to "slim or none".  The end result was that the much needed "reason to crash/correct" never happened and therefore not much happened with the market either.  This was obviously why the calls weren't for 100% chance as the "catalyst" was still missing.

Sadly I believe the same is true for this coming Legatus meeting starting on February 7th and ending February 9th, 2013...

I was very excited a month ago when I seen that they moved the "debt ceiling" date from February 30th back to February 15th, which was looking to me like it was going to be the reason to have a much needed 10% correction.  But then they went and passed some bill in Congress to extend it until May of this year.  It still has to pass the Senate too, but it's looking like there's little resistance at the moment and that leaves me wondering what other catalyst could they make happen so we can see this big move down in the market?  I don't see one in site right now and it's not like them to keep it a big secret and then throw it out there all at once.  They usually tell us sheep everything in advance, but of course in a manor that we seem to note figure out.

The only other "reason to sell" would be some false flag event that comes out of nowhere and panics the market to force that 10% correction.

But that also doesn't seem likely to happen right now as they seem to want the market to stay up really badly right now.  You can clearly see the extreme manipulation going on every day in the market now as they flood it with massive amounts of money to keep it from tanking.  Then there's this other little thing that's been bugging me, which is the "need" to see a new "all-time" high before a crash will be allowed to happen.  Right now they are only close to making a new high but not there yet.  So while we should see some type of nice pullback from hitting a double top I can't see them allowing a big move down (like 10%, which would be 150 spx points) as that might make it too hard to climb back up into May and put in a "blow off" new high.

From a technical point of view (not that they really work to well) any double top should put up huge resistance on the first hit of it and cause a pullback before going back up and making a second attempt.  So the question will be... how much of a pullback?  My gut tells me that we'll be lucky to see 5%, let alone 10%!  I just don't see them allowing it to drop to far if they plan to go back up and take out the current high and put in an extreme ridiculous crazy blow off top!  If you are a big bear like me you want them to put in some crazy new high as it's a huge signal that a crash will follow.  The higher they go, the harder they fall.

So what does that mean for this coming Legatus meeting you ask?

It means the odds go way down of a 10% correction now because of those very reasons above.  I'd now only give it a 50% chance we'll see a 10% sell off after Legatus, which by the way "NEED's" to line up with a "Double Top" at the same time so you'll have both the technical reason for the sell off and the ritual "rigged" reason from the gangster insiders closing their longs during the meeting and getting short before it starts heading south.  I'd give a 75% chance of a 5% correction, and 95% chance of at least a 1-2% correction from hitting the double top.

I know this is not what we bears was hoping for but you know how they change the game as we play it and start to figure it out.  They haven't put up the date for the next Legatus meeting but if they do it in May where all the "octave cycles" start coming together as Ali posted above then we'll know the date for the final top before the start of the first wave one down (a huge one) and the likely wave three down in August or so.   This mean we shouldn't go "all-in" on this February meeting as it could be a "dud" for us bears and only give us one small bite of a nice trout.  I'm personally looking for the whole lake full of trout to eat... which is the coming crash of course!

Remember not every one of the Legatus meeting produced a turn in the market.  Many did but some didn't.  The one's that did also had some "event" that was blamed for it.  If it rallied after the meeting then it was probably from some huge QE program injected into the market... whether it was made public or not, the results were the same.  If it sold off then it was from negative event.  But without any "event" the meetings weren't turning points but just continuation points from what I've noticed.

Let's look back in time at what happen in some of these prior meetings...

I'm not going to cover the 2008 crash in detail but I'll just remind you all that Lehman Brothers and the "possible banking collapse" was the reason for the crash (the public reason of course, as the untold reason was just to steal money from the sheep).  So let's start with the October 10th-19th, 2009 meeting (note: I don't have records of all the meetings and have missed some of them) in which we the market was about in the middle of a long rally up from the March, 2009 low.  There was a brief turn down for 2 weeks at the time of the meeting but then the rally continued for many more weeks to follow.  I'd call that meeting "non-important" as it didn't result in a really nice turn.

Next we have the meeting where I first learned about the group of gangsters and the time period where I seen my first fake print (FP) on January 11th, 2010 (which showed a 97 point drop that never happened that day).  That meeting date was February 4th-6th, 2010, and it produced a bottom right in the middle of it on the 5th that also matched up with my FP low target.  I'd call that meeting 100% accurate as you could have went long from it as it rallied for the next 2 months or more.

They usually have 2 meetings per year so there was probably one in late 2010 that I missed and one in early 2011, but I can't find those dates so I'll have to skip them and move on to the next one... which is October 13th-23rd, 2011 which produced a nice correction from 1292 SPX to 1158 in 4 weeks.  Certainly something worth playing as 134 SPX points is nothing to sneeze at!  I'd give that meeting a 100% accuracy rating, as that's about a 10% correction.

Then we have the February 2nd-4th, 2012 meeting which turned out to be a dud as it was right about in the middle of another rally from the late 2011 low to the later high in May of 2012.  I guess you could also look at that meeting as a "decision" point where they decided to continue the rally versus selling off?  You can see it in the charts that the daily was ready to rollover but the weekly still had room to go on the upside.  I don't recall what news happened during that period but I'd venture to guess that another stimulus package was put into the market.

Moving on we have the April 30th to May 2nd, 2012 meeting, which was 100% accurate as a turn.  The market peaked on May 1st at 1415 spx and dropped to 1291 by May the 18th, a 124 point move!  Very nice on that one I'd say.  From the looks of the move I'd say it was a "wave 3" in elliottwave terms.  Prior moves seem to have be a full 5 wave move but this one happened as a one complete wave 3, whereas the start of that move was on April 2nd, with the end of it on June 4th, 2012.

And after that meeting we had our most recent one on October 10th-21st, 2012 which actually saw it's peak on the 18th just a few days before the actually meeting ended.  This high was 1464 SPX and continued down until it bottomed at 1343 on November 11th... which was a 121 point drop in 23 days.  And from that low the market has been rallying up ever since (with a brief 7 day sell off from the fiscal cliff news).

Finally we arrive at the present date with the next Legatus meeting...

This week I believe we'll see them push the market up to a double top on all the major indexes (some have already hit), and if all goes as planned it will line up with this coming meeting on the 7th-9th... which implies that "if" the double top is hit this Thursday or Friday then that would be the best time to short the market.  If it doesn't quite make it by Friday the the following Monday the 11th could be the double top high and the date to go short.  But do note that I'm not give high odds of another 10% correction as I just don't see any catalyst to cause it to happen at the present time.  Add to that fact that "they" want to make "not only a double top" but a new all-time high... so high that it will kill ever last bear, and you have even more reasons to be cautious on the short side.

So unless I see some new FP that shows up as about a 5% (maybe 10%) move down (from the double top of 1574) then I'm not going "all-in" short here and will likely only take a small position.  I don't trust these gangsters as they are too good at tricking the bears with their heavy manipulation strategies.  A 10% correction would be 157 points and a 5% correction would be half of that or about 80 points (give or take a few).  That means we could hit that double top of 1574 and drop to around 1500 in the typical 3 week time frame to put in a low around the end of February just like Ali see's with his cycle work.

You can look back at many of these sell off's and you'll commonly see a pattern of about 10% in 3-4 weeks.  So it's nice to see this all lining up together with past history, a Legatus meeting, technical's (massively overbought), double top, and cycle work from Ali.  Also there is a full moon on February 10th as well as a very high reading of 5.5 here on the Spiral Dates chart (http://spiraldates.com/).  No one thing by itself seems to work to produce a turn but combining them all together does give us greater odds of a turn happening.  The question reminds... how much of a turn?

While I fully expect the gangsters manipulating this market to fool as many people as possible I just can't wrap my head around the thought that they will push straight through the double top without first pulling back some.  I think they are going to need some bears to squeeze in order to get through it which can only happen if you sell off some to get the bears trapped in some shorts.  So, I'll just stick to the odd's I mentioned earlier as all this evidence tells me we'll see something on the downside around this Legatus meeting period and the coming double top period.

In closing though I think you all should have figured out that the best time to go all-in short won't start until May, so I'm saving my nickel's and dime's for that time period and again... won't go in short too heavy at this double top and Legatus meeting.  Past history tells me you need a "catalyst" added into the fire with all the other stuff mentioned and I just don't see one yet.  The fact that they pushed the debt ceiling out until May is a sign to me and all I need now is a Legatus meeting in that month as well to confirm my analysis.

Red.

P.S.  That penny stock I've been telling you about is... well, I can't say.  But you'll see next week and the week after.  🙂

Author: Red