There is a Deluge here in Southern California of biblical proportions. Non stop rain for several days with the worst to come although currently it appears to be the eye of the storm. I believe its related to the lunar eclipse whose zenith was over this area. Mercury retrograde might also be an influence because it’s definitely hindering my ability to communicate (and research). Last lunar eclipse on the winter solstice===1638. Which brings us to Social Network and the Statue of 3 Lies. There is a scene where one of the protagonists undergoes an initiation/ritual to join a social network ie frat house???(Phoenix house I believe—-and the Phoenix features prominently in Dan Brown’s the Lost Symbol) in front of the Statue of 3 Lies ie The Staute of John Harvard (at Harvard) titled John Harvard Founder 1638. He is asked to name the 3 lies which he replies are that it isn’t John Harvard, Harvard wasn’t founded in 1638, and Harvard wasn’t the founder. (Harvard did bequeath half his fortune to the college upon his death in 1638)…….So coincidence that we have the first lunar eclipse on the winter solstice since 1638 and there is a such a scene in Social Network, which looks to be the frontrunner for Best Picture,Director, and Screenplay (by Aaron Sorkin of West Wing fame…it was speculated that Sorkin also was hired to do a rewrite of Wall Street 2 Money Never Sleeps) for the Oscars. As Facebook founder Jesse Eisenberg says, “there are no coincidences.”
That not only applies to little rallies, but the big rally that began with QE in the first place. The moment the Fed starts selling those bonds/treasuries, the market will tank, a la this past August when the Fed exercised just a few reverse repos.
In other words, the Fed is now on a course to destroy the world’s economy. Madman Bernanke can either keep printing forever, destroying the dollar completely and cause a crash that way, or stop the madness soon and cause a much smaller crash. Either way, it’s pretty much inevitable.
When this round runs out in June, mark my words, the Madman will attack his detractors by saying that this round of QE “wasn’t enough” to stimulate the economy, ignoring the fact that QE doesn’t work, and institute a much larger program.
The US in its current state has jumped the shark and needs to be purged completely and absolutely of all the stupidity (which will happen soon enough the way things are going) and will have to be built back up the hard way. Fortunately, I think the rebound then will be exceptionally strong because of all of this country’s great assets.
in case you never visit my site….here’s a re-post.
I’ve noticed over the years that stock markets have seasons. “sell in May, walk away” that occurs every 3 years or so. June Gloom, every other year or so. ETC…
The next likely correction, is JAN FEB or MAR…
JAN pullbacks are 7 to 10% or so…and happen in a 7 day time frame.
FEB pullbacks, start with a Huge ONE day drop, 300 or more points in one day. It starts in the GDX sector, and spreads to all the other sectors. lasts 2 to 3 weeks.
MAR pullbacks, if 20 to 25% of my companies are at RSI 80 on MAR 8th…This pullback is brutal and long, at least 30 days, and sometimes 60 days.
On Rallies, they are called x-mas rally, summer rally…ETC
x-mas rallies can go all the way out to FEB…
Are your eyes open or shut? Do “they” really tell us in advance what is going to happen before it happens?
http://www.youtube.com/watch?v=2HKb1HS3vjw
There is a Deluge here in Southern California of biblical proportions. Non stop rain for several days with the worst to come although currently it appears to be the eye of the storm. I believe its related to the lunar eclipse whose zenith was over this area. Mercury retrograde might also be an influence because it’s definitely hindering my ability to communicate (and research). Last lunar eclipse on the winter solstice===1638. Which brings us to Social Network and the Statue of 3 Lies. There is a scene where one of the protagonists undergoes an initiation/ritual to join a social network ie frat house???(Phoenix house I believe—-and the Phoenix features prominently in Dan Brown’s the Lost Symbol) in front of the Statue of 3 Lies ie The Staute of John Harvard (at Harvard) titled John Harvard Founder 1638. He is asked to name the 3 lies which he replies are that it isn’t John Harvard, Harvard wasn’t founded in 1638, and Harvard wasn’t the founder. (Harvard did bequeath half his fortune to the college upon his death in 1638)…….So coincidence that we have the first lunar eclipse on the winter solstice since 1638 and there is a such a scene in Social Network, which looks to be the frontrunner for Best Picture,Director, and Screenplay (by Aaron Sorkin of West Wing fame…it was speculated that Sorkin also was hired to do a rewrite of Wall Street 2 Money Never Sleeps) for the Oscars. As Facebook founder Jesse Eisenberg says, “there are no coincidences.”
That not only applies to little rallies, but the big rally that began with QE in the first place. The moment the Fed starts selling those bonds/treasuries, the market will tank, a la this past August when the Fed exercised just a few reverse repos.
In other words, the Fed is now on a course to destroy the world’s economy. Madman Bernanke can either keep printing forever, destroying the dollar completely and cause a crash that way, or stop the madness soon and cause a much smaller crash. Either way, it’s pretty much inevitable.
When this round runs out in June, mark my words, the Madman will attack his detractors by saying that this round of QE “wasn’t enough” to stimulate the economy, ignoring the fact that QE doesn’t work, and institute a much larger program.
The US in its current state has jumped the shark and needs to be purged completely and absolutely of all the stupidity (which will happen soon enough the way things are going) and will have to be built back up the hard way. Fortunately, I think the rebound then will be exceptionally strong because of all of this country’s great assets.
The longer the market puts off the pullback, the more brutal it will be.
in case you never visit my site….here’s a re-post.
I’ve noticed over the years that stock markets have seasons. “sell in May, walk away” that occurs every 3 years or so. June Gloom, every other year or so. ETC…
The next likely correction, is JAN FEB or MAR…
JAN pullbacks are 7 to 10% or so…and happen in a 7 day time frame.
FEB pullbacks, start with a Huge ONE day drop, 300 or more points in one day. It starts in the GDX sector, and spreads to all the other sectors. lasts 2 to 3 weeks.
MAR pullbacks, if 20 to 25% of my companies are at RSI 80 on MAR 8th…This pullback is brutal and long, at least 30 days, and sometimes 60 days.
On Rallies, they are called x-mas rally, summer rally…ETC
x-mas rallies can go all the way out to FEB…
Wed, should be a down day…based upon the 15 minute chart signals, unreliable….but can’t be ignored.
On my chart, which I never publish…it says If we can get 2 more up days like today, pullback coming….dow 11650 or so, maybe
Looks like the first chart missed Mar -July 2009…
Market closed on Friday.
http://www.nyse.com/about/newsevents/1176373643795.html
SPX Analysis after closing bell
http://niftychartsandpatterns.blogspot.com/2010/12/s-500-analysis-after-closing-bell_22.html