Special Video Update…


Time to piece it all together...

Ok, I did some brain storming and I see 2 possible outcomes ahead.  One has us going up to DIA 118.16 and topping out around September 9th-20th as that's when the Legatus Meeting is happening for this fall.  The last meeting was February 4th-6th, 2010... and that's when we bottomed out.  They injected stimulus package part two, and up the market went until the April high.

So, do we go up first... maybe?  But that would setup the market for a huge crash down, from a much higher level.  While it's possible to go up into the Legatus Pilgrimage this fall, I tend to think we are going down into that time frame, and will hit the 8300 print during that event.

Once we hit it, we should go back up for a wave 4 for a little while, and then back down again into the December 7th time frame.  This would put the SPX at 725 or so, and should complete wave 5 down of a larger wave 1 move.  We should go up into next year, but at some point within the next few years, we are going to reach our final bottom of 20.16 SPY.  (How's that for scary?)

So, when will DIA 118.16 be hit, and will it?  Once inflation comes into play, we could see Dow 38,000 like Mahendra predicts.  Who knows that far down the line?  But for now, let's focus on tomorrow and the next few weeks first.

Tomorrow is a huge day in the market, and should it be bad jobs data then I could easily see the 107 area FP hit all in one day.  I'm 70-80% bearish right now, but only based on my gut feelings (which are wrong a lot... LOL), not because the charts, which still look bullish.  Plus the fall pilgrimage could be a high this time... not a low.  And don't forget that the DIA 118.16 will eventually play out.  Will we do it now, while we are close to it?  Or, is it for next year some time?

I'm leaning toward the downside first, with the 107 FP being tomorrow's target.  This is just speculation here folks... the charts are still bullish.  If we go down, then I'd expect a bounce at that level.  At that point I'd have too look at the charts again to see if we are going to continue down, or turn back up and go for 118.16 dia.

If we go up tomorrow, then we could be going to the 118.16 print into the September 9th-20th time frame.  The charts can roll over at any time right now.  They are still bullish, but at extreme levels right now.  This is a very tricky place to be in, as that weekly chart tells me that we are going up to 118.16 FP first... which would set up a once in a lifetime shorting opportunity during the fall pilgrimage.

But other things tell me we are going to sell off first.  I have no idea which one is right, but I cover both in the video... and focus on the bearish case the most.  Just don't rule out the bullish case here, as the charts are not supporting my bearish case right now.

So be prepared to go long up to dia 118.16 into September the 9th-20th... should the charts push up higher.  I'm bearish by nature, and it clouds my judgment sometimes... so don't take again as "written in stone"...

Good luck to everyone...



    • Thanks Red, very good video! I am following the sun and like Seeking Alphas TNX call. I am holding pocket aces and have my poker face on! lol Red Dawn tomorrow would make my morning cup of java! Best regards, pzy5t0

  1. Can you provide a link about legatus being some kind of fake group? I never heard of them til your vid today.

    • Look in my “Red Pill Section” for Enterprise Corruption. That's Reinhardt’s site. He's called many turns in the market, and it's all been right before, during, or a day or two after… these gangster's get out of their meeting.

      They make all the decision about the market and about everything else too. Many of the people in the Bilderburg group go to the Pilgrimages too.

      It's the rich that make the rules, and the poor who pay the price.

  2. I read your work. My observation is consolidation week instead of near top. Expecting a new high in the short term trending above 1150 (S&P500) before short term top is form. Asia (SSE composite, HSI and STI) consolidating for the past few days aligning with US. I think SSE will be leading the market soon. Hints from China “top management” loosening fiscal spending – recent announcements include high-speed rail extension and infrastructure work at western China up to multi RMB$ Trillions. Expect more public, water, energy, etc. projects soon. Double dip unlikely from the July PMI data (Slow expanding or bottoming) across the world except headlines “Worries” by analysts. Corporate results also very positive at Asia and EU aligning with US corporate results. I'm bullish short term and direction will be clear next week.

    Have a nice weekends. Cheers!

  3. The jobs report dies not discuss July huge increase in companies that move to 3day work week. Underemployed are not counted.

  4. Look at that bounce off gap down already.

    should be 150 point 1.5% down day minimum and it will not happen.

    • Hey hey Red, not so fast! lol On May 6th the DOW was just about even at noon and drifted minus 150 points at 2p.m. EDT. Then over a 4 minute period we fell 560 points. It is early in the day, let’s look at some comparisons of May 6th trading and today.
      • Gold was up big on May 6th , it hit 1200. Today it is up over 1 percent to 1209.99. 999, lol.
      • Financials were leading the way down and are also doing the same today. GS, BAC, C and JPM.
      • Retails were also down and are also acting the same way today. TGT, GAP, Macys, Nordstrom.

      The biggest laugh of all, circuit breakers do not kick in after 2:30 P.M. I will be back later this afternoon, fingers crossed!

      Best regards, Pzy5t0

  5. They stopped just a little bit short of filling the gap on the spy and spx… which means we go down further, as they rarely leave a gap not filled before reversing the other direction.

  6. hello red,
    i like ur comments on whole situation & i continue to follow u, cause the us market could affect on our market ie bse, nifty.. my opinions (not statistics as i do not understand it) r very much match with ur so i had took put options one week urlear well'see what happen next. As we r very very bullish (&fullish too) on our future prospects. our market level is not fullfill the actual requirment………

  7. All of this sideways trading is putting in a bear flag now. Should it play out, will we fall outside of this rising channel. The drop should be hard, and I think it could start around the last hour of the day.

    Right now they are working off the oversold conditions on the 15 minute chart, but the 60 is still going down. It's trying, but not wanting to roll back up yet. It's still in oversold territory, but could stay there awhile.

  8. Anthony Allyn has now flipflopped. He was one of the multitude calling for another thrust higher but now he is writing wave 3 down has started. All in all it cost him a 100+ Dow points but since he got the rally right off the July lows that isn't too bad of miscall.

        • Well, everything is still holding within the wedge. But too much is convergeing here to make me believe this rally will continue. There are 3 or 4 fractal similarities to different tops right here. Today is a key date for several reasons and we are in the heart of a crash zone per Crawford or Bam Investor plus the multitude of weekly cycles. I think we also get a stealth weekly reversal at the close.
          I bought inverse ETS an hour or so ago as well as some TLT and VXX (I like be on the side of the insiders) and for the first time some basic materials inverse ETFS so I need the Euro to reverse here but it also put in a topping fractal similar to the Sept 2008collapse to March 2009 low and subsequent rally to April 2010 from its late April high to June low and rally to here.
          Plus all the shills are calling for a rally into late August which means the opposite should happen.
          They also painted the tape yesterday rallying the Dow into its high at the close while Russell was making a new intraday low setting up all.
          the longs. I have a high confidence that the high is in for this rally and I have explained most of the reasons here recently.

  9. I guess i need to leave my office more.

    i came back to a pleasant surprise. I love to be wrong. Will it last into the last hour/???

    • Stay a little while long Jim, as we should be overbought on the 5 and 15 minute charts going into the last hour…. and I know you don't want to miss that do you? LOL

      • Wait a minute are you referring to the spx bounce as overbought and therefor expecting a sell off into the eod??

        • We are getting overbought right now on the 5 & 15 minute charts, but the 60 turned back up. I suspect they will close it back inside the rising wedge, and leave us all guessing about Monday.

    • Hopefully there is one initial push up on monday morning, as I went long buying BGU in the afternoon when SPX was 1118. I will come out if it reaches 1125. Hoping for no terrible gap down on monday

  10. zstock,

    could it be Pythagoras (Pythagorus)?
    The Knights of Pythagoras (pythagorean) cemetery has much better coverage.
    Just a thought.

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