
Daily Commentary
Is Dow 5,000 The Next Stop?
On August 1st we enter the sweet spot (no pun intended because it’s really SOUR) of the Cardinal Climax.
Then on August 15th, my last post, we encountered the turbulence of the Hindenburg Omen. But no worry, there must be TWO of those complicated events to kick in. So, what’s the problem? Well, the problem is that the second Hindenburg Omen has occurred. The Omen, a technical indicator which uses a plethora of data to foreshadow a stock-market crash, was tripped again on Friday, marking the second time since Aug. 12 it has occurred. (It also came close on Thursday, but one of its criteria fell short.)
This NOT GOOD NEWS!
The latest trigger has prompted the Omen’s creator, Jim Miekka, to exit the market. “I’m taking it seriously and I’m fully out of the market now,” Miekka, a blind mathematician, said in a telephone interview from his home in Surry, Maine. “I would’ve probably stayed in until the beginning of September,” depending on how the indicators varied. “That was my basic plan, until the Hindenburg came along.”
Why can’t most investors SEE what this BLIND mathematician does?
The Omen has been behind every market crash since 1987, but significant stock-market declines have followed only 25% of the time. So there’s a high likelihood that the Omen could be nothing more than a false signal. But that isn’t stopping Miekka from taking any chances, especially as September, typically the market’s worst-performing month, sits only one week away.
“It’s sort of like a funnel cloud,” he said. “It doesn’t mean it’s going to crash, but it’s a high probability. You don’t get a tornado without a funnel cloud.” He added he’s not currently shorting anything, although he may look to short Nasdaq stock index futures in the next few weeks, “depending on how the technicals go.”
Not everyone is as OPTIMISTIC as Miekka. Optimistic you say?
The Dow Jones Industrial Average will lose about half of its value over the next couple of years as it follows a Nikkei-like pattern of several sharp rallies in an overall decline, according to Charles Nenner, founder and president of Charles Nenner research. Stocks are currently in a bear-market rally, and looking at charts and past trends, unemployment and leading indicators suggest the Dow will drop to 5,000 in the next two to two-and-a-half years.
One of my favorite stock market watchers is Richard Russell.
Russell was around for the BIG ONE in 1929 and today he wrote, “I trust that most of my subscribers are on the sidelines with gold, cash and gold items. They say that the bears in Yellowstone National Park have become a danger to man. The bear on Wall Street will be a tragic danger to man”.
Is 5,000 the next stop? Well, let’s drop below 10,000 first and then look further down the road. But, that might not take more than a day or so.
The Next Four Years
A look at the economic, political, environmental, and spiritual possibilities, in the context of the past 50,000 years.
What does history have to tell and teach us?
What cultures have we arbitrarily dismissed?
What cycles are inherent in the universe that affect us?
What is meant by an “axial age”?
What catastrophic events have shaped our world?
What does 2005 have to do with 2012, if anything?
How will the new presidency potentially look?
What can we expect out of the financial markets going forward?
What environmental challenges are most probable?
Will there be an increased awareness and consciousness?
What are some realities about the 12/21/2012 date?
2012: Axial Age II
German philosopher Karl Jaspers coined the term, "Axial Age", to describe the period from 800-200 BCE, during which time a worldwide expansion of consciousness took place, forever changing religion, philosophy, mathematics, art and the way we see the world today.Is the human race undergoing such a spiritual metamorphosis once again? Are we currently experiencing another Axial Age? Explore the evidence in this simple e-book and then join the conversation!
To discover more, click here!
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