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... Red Dragon Leo

That should put the DOW at 20,000 or more, and yeah… I could see that too. I don’t really have a clue to what the coming all time high will be in 2017 or so, but it should be high enough to have gotten ever last bear on the planet to becoming a bull.

... Permabear Doomster

The sp’2100s are a natural target in the next wave..after a summer/autumn low in 2014.

So…long from 1600..at least 500pts up..if not even higher.

Here is the issue though, how many bears will get lost in hysteria next year, calling for the end of the world? I’m guessing…most…only to see them get nuked in the final large wave up.

... Red Dragon Leo

Yes, I could see a top around that February 2014 meeting (again, I think it could be centered around an FOMC just as well) with the drop that follows being very sharp and ending in the summer months.

As far as how low will we go? We could see the September/November 2012 highs revisited I think. That’s just below 1500 SPX, and that’s a very realistic Primary Wave 4 down target. Once the top is in I’d look for Fib levels using the March 2009 low as one point and the coming high as the other.

... Permabear Doomster

yes..the derivatives mountain is an issue…hell, even I forget about that little problem sometimes!

One thing seems clear though…

This will all be resolved with some kind of ‘reset’ by 2018/20.

No doubt the central banks must have all sorts of backup plans in place of a system-break…but still..this is one damn tricky system to predict.


First things first though…

Lets see how the Fed react to some kind of major market drop next summer. I’m certainly looking for something in the style of 1998 or 2011.

The drop will be strong..but relatively brief. For many…2014 will be very confusing.

... Red Dragon Leo

I certainly hope we don’t crash that far Permabear, but you know they have something like 700-800 TRILLION DOLLARS in those derivatives out there… and that they created them just to crash the market in the future.

Without them then you’re right, the money will have too go somewhere. But if there is not enough money in the entire system to pay off the derivative bets then it will coming crashing down until they are all zeroed out somehow.

I’m not sure how that will happen but these evil people have been planning this since the 1980’s when they created these off book bets. If they get their way then they will shutdown the banks like they told Lindsey they will, but maybe we’ll see some divine intervention to stop it?

... Permabear Doomster

re: Just imagine a drop from 30,000 to 3,000

Possible..but I can’t see that.

The one thing most continue to ignore is that the money has to go somewhere. Now, unless you think the US bond market is going to suck up a lot of the spare money (at low rates)..then most money will end/stay in equities.

Basic text book chart rule…

We have a breakout of the old double top of sp’1500s.

Given a 2 yr climb…the natural thing would be for the market to floor at the 1500s..before the next era begins.

I realise for most out there.. the notion that we’ll NEVER see under sp’1500 again’ is a bizarre thought, but right now. I’m the only one who seems to be considering it.

If there is anything the bears should have learned since 2009….keep an open mind to the future.

Good wishes from a stormy London

... Red Dragon Leo

I’m still looking for 17,000 DOW (about 1920-1960 SPX) before we end this rally up. Then I’ll be looking for a Primary Wave 4 down that should shave about 20-30% off the top.

I get the feeling that “they” are misleading Lindsey Williams (again) and we won’t see this “Global Currency Reset” in the next 90 days. History shows that the last time they devalued the dollar was at the bottom of the stock market in 1932… not the top in 1929.

So, logic tells me we’ll top out in late January or early February (probably around the Legatus meeting on Feb. 6th-8th, 2014) and then we’ll drop into the summer. Then at the bottom they will come on TV and announce that they are going to steal the pension funds of the public… followed by a currency reset.

This should give the market the fuel needed to rally up to insane new all time highs in the coming years of 2015 and 2016. This will be the Primary Wave 5 up that lasts to way too long and possibly puts the DOW at 30,000+?

Then we’ll see the largest crash in the history of mankind happen that will make the 1929 crash look like blip on the radar. Just imagine a drop from 30,000 to 3,000 in a year or two? That’s what I’m expecting they have planned.

Will they do it… or will there be some greater power stop them? I don’t know? I only can think about today and a short period into the future. So while I still see gold going up huge overnight from this currency reset I wouldn’t go long it until the stock market first tops and then bottoms from Primary Wave 4 down.

I estimate that to be somewhere between June to August of 2014 (for the bottom I mean). So we should keep our eyes open for FOMC meetings in late January and/or early February 2014 for a “possible” top. I suspect Bernanke will be instructed to say something at such meeting to cause the sell off to follow.

... Permabear Doomster

Hey RDL. I was myself surprised at the pre-Christmas – and pre-Yellen change in policy. The Fed is rarely unconventional.

Yet, the markets reaction was entirely expected. A perfect hit of the 50 day MA..and then soaring.

All the doomers – not least the Lyndsey Williams will be crawling back in their holes by end of the spring, which ironically, when the next intermediate top will be due.

... Permabear Doomster

Its ironic how so many are talking about the weekly death cross in the metals.

It seems it took for Gold <$1200 for people to realise the mid term trend is actually down, lol.

... Red Dragon Leo

Ok, so I haven’t exactly been around much to give you guys update…. sorry! I’ve been busy with other stuff. In fact, I’m still working hard on perfecting this this penny stock thing. Yes, I know the picks lately have been “hit or miss” but I’m confident the new picks will be more accurate.

You must remember that anything said in the newsletter that implies a certain percentage of gain is just an estimate and you as reddragonleo followers should be be able to figure out that should you exit at a 50% gain and NOT look for some maximum potential like 300% or more as promoted in the newsletter.

Don’t be greedy… yes, some picks will explode upwards and some won’t. I can’t control that as all I can do is give the best information I have. While this is a new sector to me I’m now about a year into it and I’m getting a lot better information then I was a year ago… so use common sense here please.

You guys are getting this information BEFORE the rest of the world! I will NOT be reposting this on facebook or twitter so only those REAL reddragonleo followers will see this comment. You should make a point to email me as I try to help out long time followers. 🙂