[DJIA] update

Per the backlink model reproduced below, the DJIA continues to grind down to lower lows.



The market is likely going to view the recent move as a head and shoulders breakdown.  Given the bounce of 2 of 5, this current move is likely to count as 1 of 3 of 5.  Then, if the market is good and lucky, a small move back up to test from below could be seen before another freefall day as 3 of 3 of 5 expresses itself.  At the end of this move I could believe that support would be found in the low 15k region if not 15k proper.

At that point I would expect a big move up into red 2.  2nd waves can sometimes be more dramatic than expected, i.e. deep vee 2nd.  So shorts should really be careful there.  I actually plan on selling many of my Jan 2015 puts into the weakness of 5 of 1.  But, like the terminator, I'll be back as soon as I count a-b-c back to about the level of the prior 4th.

As a trader with a reasonably accurate model to guide me and increase my odds, I love this volatility.  Normal people hate this volatility.  The markets hate uncertainty and volatility = uncertainty. The markets would rather just sit back and collect guaranteed wealth from the markets without having done any work to deserve it.  Of course that is economically impossible yet you will never hear this said on CNBC.

If you are a boomer and you are reading this, now is the time to get to cash.  Cash is an investment even if it is also a component of the debt Ponzi.  For a time, cash is going to be OK to hide in.
Not forever, mind you, but anything is going to be better than stocks and bonds when the collapse really picks up steam.

One more thing, and this is important for thinking people to understand: the shorts are not doing this to the markets.  What is happening is already baked in because of historic leverage by the longs.  The shorts have gotten wiped out over the past 5 years in a rally that never should have been.  There are very few shorts in these markets.  That will change as wave 3 comes along but right now the shorts got burned so badly due to prior fed intervention that very little of what we are seeing is due to shorts.

For ignorant people who are told to blame the shorts by the main stream presstitutes who have seduced their sensibilities with pretty women presenting the "news" as if they knew more about economics than the average rock, read this Feb 2015 Zerohedge article which spells out who is really to blame and just how bad it could likely get.

It's not the shorts that are causing this, it is the unwind of unholy amounts of debt based "purchases" done by leveraged longs. And the only way they could ever have been allowed to do this is through the existence of a fraudulent money supply which consists of fiat currency and especially (i.e. the real culprit) fractional reserve banking.