As This Chart Clearly Shows, Stock Will Crash

By Dominique de Kevelioc de Bailleul

Harkening back to the Charles Nenner’s interview on Fox’s Bulls and Bears of early May 2011, his prediction of Dow 5,000 by the close of 2012 stood back then and stands today as a bold call.

But, here’s why stocks are very vulnerable to a Nenner crash scenario and why, even in the absence of a false move by the Fed, stock will most likely decline hard anyway.

A look at the Baltic Dry Index (BDI) suggests either the global economy is about to soar, or Nenner’s Dow 5,000 call could be on the money, or close to the money.

As of Sept. 12, the BDI stopped short of one point of its all-time low of 661, a level not seen since the S&P 500 crash low of 666 points, during the height of the Lehman crisis of Mar. 9 2009 [see graph, below].  But as the S&P closed on Sept. 12 at 1,463, a 130 points, or so, off its all-time high set during the second half of 2007, Bernanke manipulation of stock prices has set equity investors up for a fall—a very big fall.

Stock prices, which many regard as a leading economic indicator, need to explain, then, first: why have there been so many stock market crashes?  Did, suddenly, everyone change their minds about the economy and its health to deliver corporate profits?  And second: if the gold and silver markets, bond market, currencies markets and commodities markets are obviously ‘manhandled’ quite frequently by the Fed, why not stocks?  Why are stocks sacred cows of the Fed’s deception racket?

Economic, export and labor data, which show the U.S., European and Chinese economies either collapsing, in the case of the U.S. and Europe, or rapidly slowing, in the case of China and its Eastern satellites, serve as an underscore to the BDI’s low levels.

Just as the Fed used Morgan Stanley to prop up credit through the credit default swaps (CDSs) market as well as enlisting JP Morgan to suppress the price of PMs, it’s most likely that the Fed has buoyed stocks through the purchase of S&P futures via the NY Fed’s Exchange Stability Fund (ESF).

And here’s where it gets interesting.  The U.S. dollar broke through 80USD support rather easily this week, adding yet another negative for owning stocks.

At some point there will be an evaporation of the multi-year nonsensical mantra: that there is a ‘risk on’ trade and it means, buy stocks.  Instead, it’s more likely that a falling dollar against its rivals will turn out to be the foreshadowing of a crashing stock market and a soaring gold price.

The gold price did take a hit leading up to the Lehman bankruptcy of 2008, but at that time investors had not been prepared for the initial shock of the prospect of a global meltdown.  Gold had since recovered long before the crash low of 666 in the S&P was set on Mar. 9, 2009.  At the nadir of the S&P crash, gold was trading back up near its all-time high above $1,000 per ounce.

Today, however, there’s too much talk, evidence and time passed since the fall of Lehman to catch alleged ‘smart money’ much off-guard again.

From the looks of the gold chart, today, the buying on the dips to snag a better gold purchase before Armageddon arrives suggests that gold will not sell off during a crash in stocks; it will, instead soar in price, taking the number of ounces to buy the S&P to new post-1981 lows.

Many predictions of an October Surprise swirl the Internet, a stock market crash may well be that surprise, but the catalyst for the crash may come from anywhere—maybe war, as Nenner had predicted in May 2011.

STOCK CRASH ALERT: Strange Indicator Spells Doom

By Dominique de Kevelioc de Bailleul

“The charts look terrible,” eccentric technician Arch Crawford told GoldSeek Radio host Chris Waltzec on Tuesday.

But the unusual methods of planetary alignments and astronomical technical readings which Crawford utilizes to make his predictions should not be scoffed as the work of a lunatic.  His successful 25-plus-year track record and large subscriber base speak for themselves.

“There have been five-year periods along the way when Crawford’s timing was at or near the top,” according to Forbes Newsletter Watch, 2002.

The prestigious Hulbert Financial Digest ranked Arch Crawford’s Crawford Perspectives no. 1 for Stock Market Timing for the period October 1 2007 through October 31, 2009.  In addition, his researching into correlating market action with astronomical cycles and sun activity, Crawford has achieved fame for ranking at the top of his peers for the years 1987, 1994 and 2008.  He ranked no. 2 for 2002.

Aside from a ‘normal’ year during 1994, Crawford has achieved the best of the best during years of severe market turmoil and vicious declines, suggesting that maybe stock investors should pay very close attention to his latest call.

“The highest number of electrons for the longest period of time that I’ve ever seen on record prior to this year was the week of the crash of 1987,” Crawford explains, referring to electrons reaching the earth caused by geomagnetic storms erupting from the sun.

“The number of electrons at the Geostationary Operational Environmental Satellites (GOES) geosynchronous satellite level was . . went over 10-to-the-third (1,000) per cubic centimeter about a week before the crash, and the market was dropping every day,” he continues.   “And the day after the crash day, that morning was the actual low in the price, and the electrons dropped back under 10-to-the-third per centimeter that day, and that was the bottom.”

Crawford states that the amount of electrons reaching the earth from the sun on a per cubic centimeter parameter metric reaches 1,000 per cubic centimeter on very rare occasions and for relatively short periods of time.  But this year, the year of the Mayan calendar end, something most unusual is happening right now, according him.

“There have been very rare occasions when they’ve been over 10-to-the-third per cubic centimeter for any period of time,” he says.  “Well, they’ve been over 10-to-the-third for most of this year and has been as high as 10-to-the-fifth, which is a 1,000 times stronger.  Excuse me; I guess, it’s 100-times stronger.”

And it gets worse for the future of the DJIA, yet, according to Crawford.  In addition to the electron density of the earth’s atmosphere reaching red-line readings, another astronomical cycle has moved into place—an ‘indicator’ which has been his bread and butter tool for 25 years for predicting successfully stock market crashes.  That predictor is the Mars-Uranus cycle.

“The Mars-Uranus crash portion of the Mars-Uranus cycle has just become active on July 18, and that means that, well, for the last hundred years every crash that has taken place in the market has taken place in the same 40 percent of that cycle,” Crawford explains.

“And that’s a several-month window, which is not saying it will crash tomorrow, or it crashes at the end of February,” he adds.  “But between 18th of July and the end of February, I believe the markets worldwide will crash.  And that’s because, that if, any one of them falls, it’s going to take a bunch of others into a black hole.”

Interestingly enough, Swiss economist and money manager Marc Faber told Russia Today on the same Tuesday of this week that he, too, sees the potential for a 1987-style stock market crash.

“I think there’s a possibility that there will get some kind of a crash” in stocks due to the disconnect between the lofty U.S. stock market levels and the rest of the world’s depressed levels, Faber told RT.

Source: GoldSeek Radio