This could be our "October Surprise"...

(to watch on youtube: http://www.youtube.com/watch?v=yKVJzAb-jIM)

Why? Because it really doesn't make sense to devalue the dollar when the market is up so high. It would be more logical (and get more "bang for the buck") if they sell off the market some first and then at the bottom they could do the devaluation to spark a "blow off" top rally into the summer of 2013. Kind of like doing "reverse stock splits"... you don't do them when the stock is high, you do them when it's really low. That way it goes back up to a "trade-able level", where as it's hard to trade it when it drops below $5.00... which is the reason why they do them as a 10-1 reverse split would put a $5.00 stock back at $50.00 and be more attractive to trade.

Therefore, if they sell of the market a couple of thousand Dow points and then do the dollar devaluation it would make the market (and gold) go up huge... maybe even to WBS's 30k+ target? Of course it will be with devalued dollars and therefore wouldn't be a real "level" like today, but it would fool the sheep until next summer when they really do let it all collapse for real. So, what am I thinking will happen? This coming October 23rd and 24th they will have another FOMC meeting (http://federalreserve.gov/whatsnext.htm) and I think that something they say will trigger a sell off in the market. Like I said, I think the top will be put in on Tuesday the 23rd as it's a ritual "eleven" day... just like the most recent top of October 5th was also an "eleven" day.

But what will they say? They now have QE3 going forever with no ending date set, so what's left for them to say to spark a rally? I can't think of anything... can you? If fact, in this latest 3 hour video Lindsey Williams says some very interesting things starting at 2 hours and 56 minutes into it.

http://lindseywilliams101.blogspot.com/2012/10/lindsey-williams-america-will-be-over.html

I'm thinking that they "may" actually raise the interest rates at this meeting which would of course tank the market hard. Not a crash but a very large move down... possibly to this FP of 1068 on the SPX. Notice the date in the left hand top corner (not the date the screenshot was taken, which was 7/20/12 9:13am) that shows 7/19... which is 0+7+1+9+2+0+1+2=22, or "11"! These FP's that are put out on "eleven" days seem to be "real" ones, whereas others "may" be just a distraction? So, "if" they actually do sell off the market down to 1068 and then do the dollar devaluation... there going to be a new "all time" high for sure next year! Gold would go up 40% instantly just like they want to happen. Then from whatever level it starts at I would fully expect it to continue up all of next year while the market is on a crazy insane "devalued dollar" Bull Market Rally!

This would qualify for what Lindsey Williams said about there NOT being any crash in the next 3 months (his "crash" is something like from 1929, not a minor 3,000 point drop) and the rise in prices for Gold and Silver... as well as Oil. These things could all come true "if" they sell off first (to scare out all the bulls in Gold right now, as it should dip too) and then devalue the dollar to get the prices of everything up where they want them to be.

But what if I'm totally wrong and the "turn" after Legatus is UP?

This chart of the open interest in Gold has me worried. So one (or several big buyers) purchased 20,000 calls today on Gold for the 190 strike price for the month of November. Gold is selling off today as I'm writing this post and is around 168 currently. A move up to 190 or more would only happen if the "October Surprise" was the 40% dollar devaluation... which means the market won't tank hard as I current think it will. Everything tells me that we are going to sell off hard, but too many others see the same thing... and that has me really worried!

That facts are that the gangsters all met together in these Legatus Pilgrimages and decide the fate for us sheep. Right after almost all (not everyone of them though) a big turn in the market happens. I have just been "assuming" (making an ASS out of U and ME) that because we are so overbought that the "turn" will be down hard. But the reality is that we have been chop it up sideways in a narrow trading range for the last 2 months or more now. Therefore a "turn" could go either way, as trading basically sideways is just "Flat" with no direction really chosen.

I'm also worried about what Lindsey Williams said too. You see I'm sure they use him to spread "timely" information that benefits them when they want us sheep to take the other side of the trade. When they are long they spread fear in the market and all the bears get short. When they are short they everything is fine and it's just a health correction, and that we sheep should be buying the dips while it goes longer. Once the bottom is in they start spreading fear that it' going to collapse and that we sheep should panic, sell out our longs and go short. Then they rip it higher and squeeze us all out.

That's how the game is rigged folks. So right now they seem to be spreading fear of an "October Surprise Stock Market Crash". Now I've repeatedly said I see a big move down, but not a crash. However, if I'm wrong on this and the real "October Surprise" is the dollar devaluation (meaning that Lindsey either lied, was lied to by his elite source, or the elite source was lied to) and they will do it this year... not next year as he was told. Lindsey said that his source stated that they'll be NO collapse of the dollar before January 1st, 2013. I take that to mean that they won't do the 40% dollar devaluation this year... but what if he's wrong?

These gangsters are masters at lying, mis-leading and deceiving us sheep, so the biggest surprise could very well be a rip roaring rally from a dollar devaluation... and not a big correction as I (and many others) have been calling for. The facts are simple, as they refer to what has happened in the past. I'm not referring to the charts as they are too heavily manipulated to work anymore. I'm referring to the ritual numbers like "eleven" that many (not all) significant highs are put in on.

I'm also referring to the past times that there was a turn after an FOMC meeting (which is this coming October 23rd/24th). They will usually run the market up into the meeting and then sell off afterwards when no new "good news" is released from Bernanke. If they rally into the meeting slowly (because they don't know what will come out of it) then sometimes they rally hard after it... especially if Bernanke promises more crack. This past FOMC was a perfect example where they started a small rally into the September 13th, 2012 meeting and then sold off afterwards. It's always a tough call on what will happen after these meetings but they usually produce a turn in the market.

The other indicator that I watch is the Legatus meetings where all the gangsters meet to decide on how to screw the sheep again. The past Legatus meetings have been turns at least 80% of the time going back to 2008 (I never checked back further then that). So I fully expect something big to happen after this one ends this coming Sunday the 21st. Note that they are in Rome during this time period where it's easy for them to funnel their stolen money through the Vatican banks, as they don't answer to anyone or keep records of your name... only a "number" and "key" is used to access your account (great for thieves that need to launder money).

With everything lining up together now a "Big Turn" in the market is nearly certain!

The question is... which way? These gangsters are masters at stealing your money. Remember, they don't work for their money... they steal from you! The "work" that they do (if you can call it that?) is based on how to manipulate the sheep into taking the opposite side of any trade they are in... and then buying off, bullying, or threatening the right people to make the trade go in their favor. They front-men companies like JP Morgan to illegally manipulate silver and thugs like Goldman Sachs to move the stock market up and down where they want it to go. Make NO mistake about it... these people are criminals! They do "insider" trading as often as they eat, and murder the competition... physically!

You didn't really think Japan was hit by accident did you? Of course it wasn't... they had to murder the competition. For what you ask? Cars that run on water of course. That would have killed the oil cartel and destroyed their evil plans to chip us all and mold us into their "New World Order". You see, they will do whatever it takes to control you. While Lindsey Williams may have compassion for his elite friend, I don't! They are all murdering satanists that need to be exposed, arrested and tried for crimes against humanity.

Believe me, they don't care one red cent about you... in fact they call you a "useless eater"! I call them Satanist Pigs! They may be trying to save themselves as they get older and face death (that's what Lindsey says), but "karma" is "karma" and they will have too pay for all the evil they have done throughout their lives. So will you and so will I... so I try my best to keep good karma and not do bad or evil things to anyone else. I just use this blog to wake up the sheep to the evil around them, but not to fall prey to them. Just smile everyday and don't let the gangsters bother you, as they will meet their maker when their time is up. Do good to others and when you meet your maker he (or she for you ladies... LOL) will be happy to see you, and reward you for your good deeds! (assuming you believe in the afterlife?).

Anyway, I rambling now. Let's get back to "thinking like a pig" but not becoming one. What are these gangsters deciding on doing after this latest Legatus meeting? I wish I knew the answer to that question but I don't. So, I'll have to play both sides of this game but lean heavy to the short side. I plan on taking a long position on gold as a hedge in case they surprise us sheep over the weekend and devalue the dollar 40% (closing the banks on Monday of course). This will be a "wildcard" position that I expect to expire worthless if the market tanks as I expect it too (gold should follow the market down... or up). I will take this position before the close on Friday the 19th and hope that I'm totally wrong on the surprise being a bank holiday.

If nothing happens then I'll be looking to get short the market on Monday the 22nd and see if I'm right on this call. A big sell off in the market will mean the long gold position will expire worthless as gold should go down with the market. However, "if" they panic the traders with a big, fast sell off (mini-crash) move down then gold could go up huge from the panic (as traders would flock to safety) and I would win on both positions. I don't see this happening though as it makes more sense to just take it down in a similar fashion to the May 2nd, 2012 sell off. That one dropped about 124 spx points over 13 trading days.

But, if Bernanke instead announces and interest rate hike then the dollar will soar hard (meaning gold should tank, but again... it's a wildcard as "fear" can also cause it to soar higher), and the market will tank hard and fast. Logic (and the evidence) tells me that a "BIG MOVE" is coming this October 23rd, 2012 but which direction is still unknown? Therefore the safest trade is to play both sides. One would be to go long metals in case of the dollar devaluation and the other would be to short the market in case of an interest rate hike. Either way the money made from whichever one plays out should more then make up for the loss on the other one that will expire worthless.

While I'm not giving out trading advice here as you all have too make your own decisions based on what you see in the market I'll personally be looking hard at some wildcard gold calls like "some big player" purchased today at the 190 strike price for the month of November. Now we all know that there is a buyer and a seller for all trades for both "calls" and "puts", so there had to be a seller for those 20,000 calls too, right? Some of you might think that someone is just "hedging" their positions by selling those calls to collect the premium as they expect gold to go down making those calls sold expire worthless in November.... which is a natural thought.

But, what trader in his right mind would sell so many "calls" so far away from the current level to collect only 4-5 cents? If you thought (or knew because you were an "insider") that gold was going down into November expiration wouldn't you want to collect as high a premium as possible? You be more likely to sell "calls" that are much closer to the money like the 170's that are worth $2.08-$2.10 per call. Remember that someone that buys or sells 20,000 calls usually has "inside information"... meaning that you (or that trader) knows that gold is going down and that he will get to keep all the premium he collects for the sale of those calls. So ask yourself this question... would you rather sell 20,000 calls for 3 cents each and keep the premium when gold sells off as expected or sell 20,000 calls for $2.08 each and keep that premium?

Logic should tell you that one (or several large traders) did not sell 20,000 calls at the 190 strike price today to collect the premium for them when they expire worthless, but instead bought them because he was expecting a big move up and they were dirt cheap to purchase. A dollar devaluation would cause them to go up 10-20 fold or more... overnight! To me it makes more sense that one (or several) large buyers purchased these calls today from many smaller sellers (that don't think gold is going up). While there has to be an equal amount of buyers and sellers for every call and put at every strike price that doesn't mean that there can't be one big buyer that purchased from many smaller sellers... which is what I think happened today.

Of course this is all just speculation on my part, but I wan't to be covered for the big move coming, so playing both sides just makes the most sense too me right now. Therefore I'll be looking to pick a crazy "out of the money" strike price on some gold calls tomorrow (Friday, October 19th, 2012) to go long on. Again, I fully expect them to expire worthless as I'm only getting them as a hedge against a surprise dollar devaluation over this coming weekend. Then I'll go short the market with some SPY puts on Monday the 22nd (again, this assumes nothing happens over the weekend). From there I'll just wait and see what happens during the FOMC meeting on the 23rd (the most likely "turn date" because it's an "eleven" date). My ratio will be 1/3rd long gold and 2/3rd's short via the SPY.

Please make your own trading decisions here and don't put up more money then you can afford to lose. While I'm doing my best to help everyone make a bunch of money from this big move coming I'm not always right as I'm a sheep like you are and don't have any insider information. This is pure speculation on my part and I'll be putting it to the test with my own money, but you should do your own research and make your own decisions.

Good Luck everyone...

Red

Author: Red