Will There Be A Stock Market Crash In 2014?

Or Just A Big 15-20% Correction?

(to watch on youtube: www.youtube.com/watch?v=Gi-mqG8gkQM)

I give the odds of a big correction at 95% and a full blown crash of about 50% for 2014…

In the past 3 years all we’ve seen are these small 4-6% corrections and many people think that’s all we are going to have this time around too.  They see the market at or near the 200dma and think it will bounce and go back up to new all time highs again.  But will this time be different?  I think so.  Why you ask?  One simple answer:  “The weekly rising trendline of support final broke down last week and closed below it”.

S&P500-Weekly-Chart-10-12-2014

 

It’s been having these small corrections since the 2011 low and bouncing off of that trendline every single time.  It’s been great support for the last 3 years but it’s finally failed.  This is the first signs of the end for the bull market since the 2009 low.  While I’m sure there will be one more final rally to retest the current high, (which should start this December, 2014 and carry into early 2015) the current trend is down and we should not assume that this correction has ended yet.

My estimate is that we’ll see the mid-1700′s on SPX by the end of November before the Christmas rally begins.  I suspect the Full Stochastic will be bottomed in the 20′s on the chart above by that time and allow a relief rally.  The MACD’s should be close to the zero line as well, where other bottoms form and allow a bounce.  Once that rally starts it should last all of December (of course) and carry into the early part of 2015.

It’s hard too know how long the rally will last as it could be only 3-4 months or 3 years?  It is called a Primary Wave 5 up in Elliottwave terms by others (Tony Caldaro) that do a lot better job of tracking wave then I do.  It only has to have a higher high then the current high of 2019 SPX to be a successful Primary Wave 5 up.  It could simply go to 2020 in 3-4 months or extend for 3 years to 3000 or more?  There is no way to know what the government will do to try and extend the market but we can speculate based on the past.

What could cause an extend Primary Wave 5 up… QE4, QE5, and QE6?

I don’t know the answer there but I’ll say that “in my opinion” the QE programs have exhausted themselves and won’t work to prop up the pig from here on forward.  This pig of a stock market is much too heavy now with unsustainable debts world wide.  It’s like giving a dying patient a fourth, fifth and sixth round of chemo and radiation treatments with triple the morphine.  It might have helped keep the pig alive in 2009 but this pig is dying and no amount of stimulus is likely to work this time around.

What does that leave for the government to do?  I don’t have a clue?  You can see in the monthly chart below how we should have crashed in the last few years but were saved by QE Infinity (also known as QE3 [quantitative easing]}.  Looking at the 2011 to 2013 period you’ll see the market go from 1400 area to 1100 and stop, then rebound back up again creating the rising channel we see now.  Now look at the ROC (rate of change) during that same period.  It’s hovering on the zero line for almost 2 years trying not to fall below.

S&P500-Monthly-Chart-(top-half)-10-11-2014

When you compare it to the level the MACD’s were at during that period, and then look back to the 2007 top to see the comparisons you would have thought the market would have crashed but the government intervened with the largest QE program ever… “to infinity and beyond as Buzz Bernanke would say”!  It looked perfect for another HUGE “wipeout” crash at that time from a technical point of view.

You have the 2000 high with MACD’s up in the 120-130′s, then a lower MACD high in 2007 in the 60-70′s, with the 2011-2013 zone peaking in the 50′s creating a triple negative divergence on the Monthly chart.  Clearly the market “should” have crashed then, but the Fed’s intervened with QE Infinity.  Now they have successfully manipulated the stock market up to historically levels.  The MACD has never been higher in history (from what I read someone else).

What’s all this mean you ask?

To me it says the likelihood of a “Full Blown Stock Market Crash” like 1929 is VERY likely to happen between 2015 and 2017.  The biggest drop will likely happen in 2015 I think as I really doubt if we’ll make some extended Primary Wave 5 up that last for 3 years or so with upside targets of 3000 or more.  I’m more inclined to seeing a December 2014 rally that will look similar to rally May, 2008 that simply made a lower high and then crashed the rest of the year.  This suggests that we’ll top out in January, 2015 and then drop all year.

If the market goes down to the 1700′s area where the lower trendline of support is on the monthly chart then that’s the scenario I see happening… just a one month Christmas Santa Claus rally  to make a lower high in January and then a crash.  If however the market only goes down to the 20ma around 1795.47 on the monthly chart then there’s a possibility that we’ll rally back up to make a “slightly” higher high in early January to hit a “possible” FP (fake print) I spotted on the SPY back on September 19th, 2014 showing 202.45 as an intraday high.  Since we never went that high that day it’s “possible” that it’s a FP signal to the insiders that know how to read it, which “could” indicate the final top in early January, 2015 after this correction is over with and the P5 (primary wave 5) rally starts.

SPY-FP-202.45-on-09-19-2014

It could be nothing of course… or a “real” FP telling insiders the final high for P5?

Let’s talk about the rituals for minute now…

Yes, it’s that time of year again when all the elite satan worshiping gangsters meet in secret (but right in front of you… if you are looking?).  Of course I’m talking about Legatus, where we find every snake of importance in the world going to so they can find out the latest information on how the super elite gangsters (the true Reptilians) play to screw the sheep (that’s you and me).

Legatus-October-Meeting-2014

Their October meeting is going on now as it started on October 8th and ends this coming Friday October 17th, 2014.  I’ve done many posts in the past about the importance of these meetings and how the gangsters like to “turn” the stock market before, during, or just after one of these meetings end (http://reddragonleo.com/2013/02/03/the-law-of-equilibrium-and-past-history-with-legatus-and-turns-in-the-stock-market).  I called a very important top on May 22nd, 2013 primarily based on a Legatus meeting during that period, along with technical analysis and numerology.  That date added up to a 33 when adding all the numbers in it leaving 22 as a whole since it’s a master number.

Point being is that the gangsters commonly have “turns” in the market around these meetings and they use numerology to pick dates.  Having this meeting going on right now and ending this coming Friday tells me it’s likely to be some type of bounce back up wave to retrace possibly 50% of the entire down move from 2019 to whatever the low is… which I suspect will happen Monday around the 1900 area (+/- 10 points).  So “if” we bottom at say 1890 SPX this week we could “should” retrace back up about 50% of the move down.

Speculating here but if we dropped from 2019 to 1890 then we about 129 points and half of that is about 65 points.  So we should bounce to about 1955 area before we have the really big drop start.  I think we’ll hit that level by this coming Friday but it could go up a little more the following Monday to some other Fibonacci level like 61.8%, or 79 points from the 1890 low… meaning 1969 is possible.  First of course we have to find the low to calculate from… which should happen early this week.  Then we can guess on the upside target…

Usually high levels of open interest in the Puts for October 17th expiration…

Since I like to trade options I’m commonly looking at the various strike prices, open interest, levels, days to expire, etc… and one of the things I mentioned a few weeks back in a comment and tweet was the very high level of puts in the 190 and 195 strike prices.  On could imply that it’s insiders buying them up as they know the market is going to fall below that level.  But that’s not usually the case.  Most of the time it’s just speculators that may or may not have seen the down move coming and loaded up short.  However, from my experience the “market makers” will manipulate the market back up above the highest open interest levels to make those puts expire worthless.

High-Open-Interest-SPY-October-17th-2014

So will this time be different?  Maybe?  I just don’t know?  Normally I’d expect to see 50,000 to 100,000 contracts on any given even number strike price and less then that on the odd prices with the .5′s on the end but having 556,194 contracts at the 190 strike price is at least 5 times the normal amount I’m used too seeing.  Then the 195′s have 237,554 on them, which tells me the market makers will have to do a whole of digging in their pockets to pay out those put holders if they allow it close below 195 SPY (about 1950 SPX) this coming Friday the 17th.  I can tell you that these guys are similar to card dealers in Vegas and will lose their job if too many people win at their table.  So you tell me what you think they will do?  I think they will rally the market up to make them expire worthless.  In Vegas some manager would come out and have the dealer move to another table to break up the winning streak.

Of course there’s no way to know for sure if the “insiders” are actually the one’s that are short and know that the market is going down below there by Friday the 17th but certainly we’d expect to see a lot of wild swing “shakeouts” for the retail sheep holding puts.  Then after the market makers sure up their positions they “could” let the market collapse late Friday after most of those puts holders have giving up and sold out at a lose.  Anyway, I’m looking for some kind of rally this week as everything tells me we are oversold short term and due a nice rally.

But after the rally we should expect another HUGE drop the following weeks into the end of November.  I’m looking for that rising trendline of support to be the low are before a bounce, which appears to be around the low 1,700′s.  If it’s only a shallow sell off then the 20ma on the monthly chart “could” stop the fall, which is just under 1800 SPX.  I’m unsure which will happen but leaning toward the lower target just based on the charts and how many weeks we have left before the end of November when I’m expecting a  bottom to happen.

After that we get a Santa Rally I guess…

Red

P.S.  Let’s keep an eye on the Fed’s Outright Treasury Coupon Purchases too as they can add to the extreme volitalite as they try to save the market from collapse on these days.

Outright-Treasury-Coupon-Purchases-For-October-2014

Global Currency Reset Stock Market Crash Or Both?

Is Christine Lagarde fooling the sheep or telling the truth?

(to watch on youtube: www.youtube.com/watch?v=_jkSp18v0Dw)

I delayed writing this post for over a week as I just didn’t think it was going to happen.  Past history shows that every time we sheep hear something on the internet that is supposed to happen, and therefore we short the stock market, we end up getting screwed when the market rallies and the event date passes with nothing much happening.

But… is this time different?

I really wish I knew the answer there but I don’t?  The last 5 years have been a huge learning experience for me personally as I only started this blog to post my own thoughts about where the stock market was going to next.  I never decided to take the “red pill” and become a conspiracy blog poster.  In fact I never would have went down the rabbit hole if I hadn’t seen my first FP (fake print) back on January 11th, 2010 showing a 97 point drop in the SPX that day when it really only traded in a 5 point range or so.

That lead me down the path to learning that the stock was 100% rigged… and always has been rigged since it was created many, many years ago.  It’s designed to steal money from the average long term investor sheep that doesn’t trade the market everyday but puts in his or her savings into a 401k plan with the hopes of having a nice nest egg to retire on one day.

The gangsters the run the market (they are called the Illuminati, the Cabal, the Free Masons, but they are all the same) created this system so they could use these sheeps’ money to pay for large projects they build in other countries where they find cheap labor to replace the current labor force in the current country.  Meaning that they have the sheep in a country like America pay to have their jobs replaced by cheaper labor in a third world country.

Basically they crash the stock market from time to time to steal that money to pay for the building of the infrastructure of that third world country.  The money they steal from the sheep from their retirement plans being cut in half goes to pay for the final outsourcing of the sheeps’ jobs to that third world country.  So when you hear a president come on TV and say that he is going to help “level the playing field” by creating jobs in one of those countries you now know that he simply means that he plans on replacing your high dollar job with someone cheaper.

The last stock market crash in 2008 was done to pay for the infrastructure of India…

The next stock market crash will be done to pay the infrastructure of another third world country that has even cheaper labor then America or India does.  People there work for a dollar a day I’m told… which means that the gangsters that control the world can put a lot more money in their pocket by paying those people the pay YOU!

If you think they will replace you with a machine or robot you’re wrong!  You’ll be replaced with another human that is less educated then you and will work for far less then you currently make.  The biggest “outsourcing” of YOU is scheduled to be completed in 2017… which means you can expect a HUGE Stock Market Crash to start that year as it’s the LARGEST project ever built, and that means it will be this biggest crash since 1929 as well.

But I’m getting off topic hear aren’t I?

Sorry, but one of the things I always do is just write whatever comes to mind at the time.  That means I go off topic from time to time as the thoughts just pour into my head.  In fact, I never script anything or go back and change any videos.  If I screw up in something I said I just keep on talking and post it anyway.  Going back and editing out the “hmmm’s and uh’s” is a waste of time as I’m just as human as you are and make ton’s of mistakes.

One of those is the penny stock newsletter.  While I’m still struggling to understand this game so I can help all of you make money from it my partner and I are frustrated with alerts we’ve sent out.  All the recent companies we’ve researched thoroughly and know that they all have huge potential.  But it seems that they can’t seem to get going to the upside even when a lot of other groups also see the potential and alert their members too.

However, that’s another story.  I don’t have time to go into details about it now as I’ve got to tell you about what I see happening the stock market right now.  Meaning that this Christine Lagarde video is something I must cover again.  While I did a post on it back in January (http://reddragonleo.com/2014/01/20/when-will-the-stock-market-bubble-burst), and even though the date I forecasted back then was wrong the video itself is something worth revisiting.

I know that in the past 5 years I’ve gotten caught up in this “red pill” stuff and went short the market based on it… only to see the market rally and kill my position, some how this time “could” really be different?  While I don’t have a crystal ball I will say that I’ve never actually heard one of the gangsters (the elite… as in, Christine Lagarde) publicly say something that pointed to an “event happening” and a “date” for it.  Truly this is a first… at least for me!

I’m probably 100% wrong on this call as I feel I’m the only person bearish right now…

Here’s my thoughts… Lagarde is telling the truth as she is clearing saying that we are going to experience a big correction in the market this year.  Why?  Because it’s a “magical year” as she clearly pointed out how important the number 7 is to the elite.  The question is… what is the date she is talking about?  And what is it that is planned to happen?  Will it be a “Global Current Reset” as Lindsey Williams said will happen, or will it just be some other reason for them to tank the stock market?  I don’t know “what” the event is but the date does seem to be set in July of 2014 as 2+0+1+4=7 and July is the 7th month.  The only thing left is the date of the month… which the 7th, 16th, and 25th all equal a 7, but which one?  When combined with the month and year you’ll have “magical” 777 day!

I’m speculating that it’s on the 16th because of this Bradley turn date that peaks on the 16th…

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

 

Now of course I could be off and the date could be the 25th, but I must admit that “if” we some how put in high, low, open or closing price on Wednesday the 16th (a 777 day) of 1977.77 SPX or 197.77 SPY I’d be extremely excited about shorting the market as that would be a signal to the “Illuminated Ones” (which I’m not one of but trying to figure out their signals) that the top was in.  Most people don’t remember August 25th, 1987 other then that was the high for the year of 1987 but the crash was of course on “Black Monday” October 19th, 1987.

However, on that date the SPX put in an intraday high of 337.88… which the 88 is of course a master number meaning “11″, but more importantly was the “not noticed” (except by the “Illuminated Assholes”) intraday low of… [insert drum roll here] 333.33!  YES, they put a clear signal that the top was in that day!  Did you see it or know it?  Not likely… in fact I only noticed it about a year ago after I started added numerology in my day to day chart analysis.  Does it mean any?  You tell me… does the March 6th, 2009 low of 666 mean anything?

Maybe I’m totally nuts and ritual numbers in the market are just random events, or maybe the market really is run by vampires called “reptilian shape-shifter”?  People believed in demons centuries ago but modern man doesn’t seem to think stuff like this is real… why?  If they were real back then what makes you think that they some how disappeared today?  If they ruled the sheep back then why shouldn’t they still be ruling the sheep now?  They just go underground (so to speak) and hide from the public, but they still run the show.  In fact, the oldest vampires are probably in the Rothschild family and are the one’s responsible for shooting down that plane in Malaysia.  There was a team of 4 Chinese inventors that held a patent for 80% (20% between each of them) for something still unknown, with FreeScale Semiconductor owning the remaining 20% of the invention.

Now the interesting thing is that FreeScale is owned by the group building the new infrastructure (to eliminate YOUR job) which is called the Blackstone Group.  And Blackstone is own by the Rothschild vampires… so do the math!  They shot down the plane to get 100% of the patent as the legal contract stated that in the event of one of the parties dying the remaining percentage of would be split among the surviving members.  Therefore, if you kill 4 people that own 80% of the patent the remaining company called FreeScale would then get all of that and own 100%, not the original 20% (nothing new here as the same vampires sunk the Titanic too, but that’s another story).

Getting back on track again…

Again, I must apology as I sometimes just drift onto subjects that are off topic and I’m sure you don’t care about that other stuff and just want and update on the stock market so you can make money from it. My thoughts have been simple really… a ritual number should but put in on Wednesday the 16th of 2014 to indicate that an important top is it.  My “human side” tells me that they will take the market higher but recently I’ve been “talking to myself… LOL” for a lack of understanding and I’ve been told to short on Wednesday and that it would be a very important top… and that this Lagarde thing is real.

Personally I don’t believe my “inter-voice” yet, as I’ve only recently (the last 2 weeks) been talking to it (yeah, if you didn’t already think I was crazy you do now).  I mean, come on now…  I’ll be 50 years old (although I look much, much younger… probably the blue eyes and blonde hair) this coming August 10th, 2014 (yes, I was born the year of the dragon in 1964 and the month of Leo… hence the name of this site) and I have to say that I feel like I’m only 30 years old.  Crazy huh?  It’s probably because I never got married or had any kids to stress me out… LOL!

Anyway, this voice in my head has told me 4 correct calls in a row and I took 3 of them to make a bunch of money.  I didn’t take the Monday the 7th call was to get short within the first 30 minutes on the expect bounce.  Needless to say I was dumb for missing out on that call and not listening to my inter-voice.  I did listen and I placed a short on the 9th right at the last 30 minutes of the day.  I think I tripled my money on that call (it was a put spread that expired that week… very risky).  Then I went long at the bottom (missed it by a 1-2 points) on 7-10 as my inter-voice told me to sell and go long into this coming Wednesday the 16th.

However, stupid me closed out my call spread on Friday before Monday’s rally up.  So while I still made about 40% gain I could have made about 80% if I had listened to myself telling me what to do.  This voice tells me to short the crap out of Wednesday’s move with the expected high to happen by the noon time hour.  I can’t explain it but I’ve made a bunch of money on taking the 3 of 4 of these predictions with all 4 of them being correct.  It’s hard from me to believe that suddenly I’ve been in contact with my immortal soul (or directly with God himself/herself… LOL) but I’ve prayed about it months now.  I really wanted to connect with myself through my pineal gland like all the gangsters do to connect to Satan.

But while others have been able to see visions and stuff I’ve seen nothing.  I still see nothing.  I’m probably nuts for even posting this publicly but myself tells me to do it… LOL!  Well, there’s nothing like pouring out your heart publicly I guess.  So I’ll just say again that I strongly believe tomorrow is an important day to take a short position.  I don’t know if there is going to be a “Global Currency Reset” like many think will happen (and Christine Lagarde hints at without saying directly) but the charts are very bearish and even without such an event we should be in a short position.

Here’s the previous notes that I posted back in January…

  • 2014 will be a magic year (meaning what?  will you pull a rabbit out your hat?  will you steal money from the sheep without them seeing you do it?)
  • 100th anniversary of the first world war in 1914 (strangely when I researched what happened to the DOW back then it was closed down for several months due to the first world war starting.  are we expecting the same here? REFERENCE: http://www.ritholtz.com/blog/2013/02/most-long-term-charts-of-djia-are-wrong, http://measuringworth.com/DJA, https://www.globalfinancialdata.com/gfdblog/?p=1426 )
  • 70th anniversary of the Bretton Woods Conference that gave birth to the IMF. (The delegates deliberated during 1–22 July 1944, and signed the Agreement on its final day. REFERENCE: https://www.google.com/search?q=first+bretton+woods+conference+date&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=fflb Not sure what the hidden message was here?)
  • 25th anniversary of the fall of the Berlin wall (Destruction date: November 9, 1989… but what is she hinting at here?  Is the “buzz word” the “25th”or the “fall”?  Does the 25th mean a certain future date or does the word “fall” indicate that the market will fall hard?)
  • 7th anniversary of the financial market jitters. (again with the focus on the number 7… meaning what?  are we looking for another move down similar to 2008?)
  • The crisis still lingers… (clearly this means we are going down again)
  • It will not happen randomly… (of course not, it’s always planned)
  • “Global growth is still stuck in low gear” (Hmmm… just a fall guy to blame I guess?  We tank and it’s the fault of slowing global growth)
  • It will not be without downside risks, and significant ones (referring to inflation… or was it really meant to refer to the stock market?)
  • We are seeing rising risks of deflation… (good for us sheep but bad for them)
  • Global growth slowing down as the economy cycle turns… (the “buzz word” that stands out to me there is “cycle turns”)
  • Risk of capital runs… (You really mean the gangsters are moving their money out the market before the collapse)
  • Dry run back in May of 2013… (Ah yes, the old test where Bernanke hinted at pulling money out the market last year)
  • There could still be some rough waters ahead of us… (another clear warning that they plan on taking the market down)
  • Overall, the direction is positive (meaning after the downturn the market we’ll go back up again, which should be a final Primary Wave 5 up with this coming correction next month being a nasty Primary Wave 4 down)
  • 95% of the income growth went to the top 1% (Duh… nothing new there as that was always the plan!  Steal from the sheep and give to the wolves)
  • Tapering will have too be very well timed… (again, she’s clearly staying that we are going to withdraw money from the market)
  • Central banks will have to “undo” what they’ve done… (and again, more references to cutting back the stimulus?)
  • Removing the threat of the debt ceiling… (meaning what?  They won’t set one, or make it unlimited?  I don’t know what she means with this sentence?)
  • A stress test will be done in 2014… (Why?  You already know the banks would all fail.  I guess they have to blame the correction on something)

I’ll point out that unless you are truly one of the elite it’s not obvious to the date of the event or the actual event itself.   It’s only obvious that we are in for some rough waters in this magical year of 2014.   Does that mean we tank in the stock market?  Does that mean we have a global currency reset?  I just don’t know the answers there but I sure do think this market is ready to take a nose dive.  So assuming we don’t gap up 10+ points on the 16th I’ll be looking for some ritual number (like 1977.77 SPX or 197.77 SPY) to be hit early on which I’ll be shorting for a ride down to 1900-1920 SPX area in the coming weeks (or less?).

Red…

 

Bulls In Control Until Mid-Summer…

Light Volume Melt UP Still Continues…

(to watch on youtube: www.youtube.com/watch?v=ye9vs_any6Y)

The market is currently experiencing some of the light trading volume days I’ve seen in a very long time.  It’s preventing the bears from having any pullback at all.  While we “should” have had a 2-4% SPX pullback recently it just hasn’t happened and doesn’t look like it’s going to happen anytime soon.  Possibly we’ll get some “one day wonders” of 20-30 points down in the near future but I wouldn’t count on it.  The old saying is “never short a dull market” and this is the dullest market around.

I’ll go over the charts in the video but any bearish case (and there’s a whole lot of them) will probably NOT play out due to the light volume we are having that keeps the market up in spite of everything else.  Some even say it feels like the 1999-2000 run up in the market… just a slow grind every day to put everyone to sleep as it defies gravity and just never has any decent pullback to get long at.  Everyone was forced to chase it… at least until the END!

While I’m not expecting this year to crash like it did back then I am expecting a 10-15% correction later this second half of 2014.  The real crash is around 3 years away I think.  However, I was expecting some pullbacks of 2-4% that I would like to play on both the downside and the upside rally that would follow.  It’s just not looking like I’m going to get it until we see some more volume in the market.  We are very far away from all the moving averages below and various support levels, which normally CANNOT be sustained for very long without a correction.  But we are NOT in a “NORMAL” trading period as the volume probably the lightest we’ve had for the last 5 years or more.

It tells me that the Fed’s have instructed the big institutions NOT to sell, which will allow this light volume float up to continue much longer then it should.  It’s obviously not the Fed’s QE money pushing this market up as they are taking more and more of it out the market at every FOMC meeting, so it’s got to be the small retail sheep buying it up here as there’s no one left but them.

Lets examine this daily chart of the SPX for a minute…

SPX-Update-06-08-2014

Looking back to December of 2013 you’ll notice how the market hit overhead resistance, pulled back for a couple of days (30-40 points), went back up and hit resistance again and then pulled back for a 2nd time for another 30-40 points…. and finally rolled over for about a 6% correction to bottom at 1737 SPX in February of 2014.  Then we rallied up until March before tiring out and after several days of chopping sideways we dropped for a few days… again 30-40 points.

Then back up to peak at 1897 in late March, which was then followed by about a 4.5% correction.  Each time the market dropped to hit the rising trendline of support from 2011 and bounced back up from it.  That’s why I was expecting only a 2-4% correction this time as the market was making smaller corrections each time as it was coming to the end of the rising wedge.

This most recent time the market chopped along that rising trendline of resistance in the 1920 area for many days and couldn’t get through.  Everything looked similar to the prior 3-4 times except that we were actually more overbought this time thing previously.  So what changed?  Why didn’t the market rollover again?  The only answer I have is “EXTREMELY LIGHT VOLUME!”.

So what’s next?

My best guess is that we continue higher with that next overhead resistance line being the next upside target.  It looks to be near 2000 SPX on the chart but it’s hard to tell for sure as it rises every day.  But if there are a lot of bear stops still left after Friday’s breakout move then the bulls could put a nasty wave 3 squeeze on the bears and run this up higher then we could believe this week.

However, the more likely scenario is that we backtest the broken trendline of resistance in the 1925 area that will now become support.  This week is usually the pause or down week with the bottom being put in on Thursday or Friday, and then next week is usually the super bullish week as it’s the month option expiration week.

With that said I’d look for a long position on a pullback to backtest that broken trendline as the odds are strong that we will now continue higher with 2000+ being the upside target area.  Once we hit that rising trendline (which again is in the 2000 area currently) I could then see a pullback to the middle rising trendline that we just broke out of late last week.  It could rise up to 1930-1935 by then… depending on how long it takes us to first hit the upper rising trendline near 2000.

Catching a bear move is during a cattle drive isn’t exactly the easiest thing to do!

One might view this slow grind higher as cattle (the bulls) being driven by some ranchers (banksters) from one coast of America to the other coast with some random bear attacks at night when the cattle are sleeping and the ranchers are passed out from drinking too much Whiskey.  The bears get a few of the cattle but the rancher always wakes up the next morning to protect the herd.

So until these cattle are delivered to their final destination and read for slaughter I’d be cautious on the shorting, and instead you might just want to go long once that middle rising trendline is backtest this week.  My best guess is that we peak out on Tuesday in the 1960+ area and then drop back into Thursday or Friday for the low… which again should only backtest the middle rising trendline that we just broke out of last week.  It should be in the 1930 area by Tuesday but with the 10 day moving average at 1923 we could see that hit to trick the bears by piercing the trendline of “now support” (former resistance) on an intra-day move.

It’s common for them to briefly pierce through support and resistance levels I’ve noticed as it lures in the suckers just before the turn and go the other direction.  I think that area just below 1930 is a good entry for a long into the 3rd week of this month as it’s option expiration week and is bullish 80% of the time.  You could probably get long and this Thursday or Friday (June 12th or 13th) and ride it up to that 2000 area which could come as early as by the following Friday the 20th (no guarantee on that time frame though).

Naturally everything I’m speculating on here can change (and usually does… like 100% of the time! LOL), so keep checking the comments for updates as time goes forward as I post any changes there which also get reposted on Twitter and Facebook.

Hang in there bears, you only have another month or so to go…

Red

 

The Scary planetary alignment due on April 21st 2014

 

Mother’s Day Weekend Update by Red

(to watch on youtube: www.youtube.com/watch?v=hoYuzvibh3k)

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Ali’s Post…

The Scary planetary alignment due on April 21st, 2014 which is synchronized with the upcoming huge financial asset bubble burst! Be ready!

Certain important planetary alignments can be used to project both the minor and major turning points in stock market. In other words, some important planetary aspects can be used as a great timing tool in the stock market activity.

There are two systems of measurement that define the periods of the planets; the “sidereal “and “synodic” systems. The sidereal period is the time it takes a planet to complete one orbit. For instance, the sidereal period of the earth is 365.25636 solar days or Mars whose sidereal period is 687 solar days.  On the other hand, a synodic period measures the period between two successive conjunctions of two planets. For example, the time interval between two successive conjunctions of Jupiter-Uranus is 14 years.

The planetary aspects are created when the important angles of the planets are aligned. As a matter of fact, such angles have traditional names; Conjunction(360 degrees), Opposition(180 degrees), Trine(120 degrees), Square(90 degrees), Sextile(60 degrees), Semi-Square(45 degrees), Semi-Sextile (30 degrees).

One of the most important planetary aspects is due on April 21st or 22nd, 2014 which could be synchronized with a nasty financial crisis.

Actually, It will not be the end of the world though. At that time, Uranus is exactly square (the 90-degree aspect) to Pluto. It is also square to Jupiter and both Jupiter and Pluto are square to Mars. You see, all four planets are either 90 degrees (Square) or 180 degrees (Opposition) to each other. It could be a real scary planetary aspect which might impact the financial markets, especially the stock market BIG TIME.

It is really important to understand that big world events are not necessarily synchronized with the major planetary aspects, the exact date on which they occur. Sometimes a couple of days before or after or even a couple weeks before or after. You have just begun to see the turmoil in the stock market though.

 

May you profit handsomely,

Ali

www.divinechartpatterns.com

info@divinechartpatterns.com

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Red’s video…

(to watch on youtube: www.youtube.com/watch?v=5G9_6ll4e5w)

 

Here’s the link to Raymond Merriman’s interesting post about these time period…

http://www.mmacycles.com/weekly-preview/mma-comments-for-the-week/mma-comments-for-the-week-beginning-april-21,-2014/