The top level model that everyone should care about [ExistRESales]

Greenspan famously told us that as housing goes, so goes the US economy.  What he left for illuminated listeners to understand is the reason why.  This is because homes are all debt financed these days given the liberal decades of borrow and spend that we have endured.  But now the conservative wave is upon us.  I called the turn in near real time with the Duck Dynasty situation as well as the armed standoff at Bundy ranch and I have been providing proof points that grow more and more obvious each month since those incidents.  The liberals are in flat out retreat right now across the board and the trend is still nascent.  It has a long, long way to go.

In any case, homes are the biggest asset class in the economy and banks count houses as their assets even if you "own" it (you never own it really until you pay it off).  When home sales go down, home prices will soon follow and the Elliott wave count on home sales is looking very, very clear.  A break below that top rail is the kiss of death for real estate sales, banks and the stock market.  Look at all the massive layoffs that are now in the works.  Caterpillar is the latest saying 10k people must go.  They are doing this because of the global slowdown.  The world is in collapse and the US is going to be collapsing as well.


If this sounds like doom and gloom then wake the Hell up.  Life comes and goes in cycles; it is normal.  If you have your health then what else really matters?  Additionally, if you have the eyes to see what is about to happen then you can sidestep all of this carnage simply by getting clear of the wreckage and into cash.  Cash is an investment too!  When the big panic occurs, you can sit there and smile knowing that a bottom will arrive in 2-3 years and those with cash and who, having seen this prediction made well in advance and who will thus be armed with confidence as well, will be able to buy assets at great depression prices while everyone else is selling as fast as they can because they have to service their debt in an environment of collapsing prosperity.

Create a cash pile for the next couple of years and then buy your next home or rental property for dimes on the dollar.

Nobody is predicting this right now except Ellioticians.  But know this: there is only one "must" pattern rule in all of Elliott waves and that is that horizontal triangles are penultimate.  You can be sure we are not looking at a "4" here so it must be a "B".  That means C wave on deck.  In fact, C wave is going to be crashing over the decks and sinking a Hell of a lot of good looking boats who didn't see it coming.

Don't let that be you.  Remember, stair steps up, elevator (and in this case, one without any cables attached) down.