Saturday, January 2, 2016

[RUT] update

Model from the backlink is below.



The actual snapshot has followed the model closely and it is now very near an important moment of truth.  If this model is correct it should enter a 3rd of 3rd in early January that should drive significant panic in the markets.  It will probably be accompanied by a collapse in the FXI chart according to my model for it.  In other words, the dumb Chinese president essentially promised the people that the stock market collapse was over but when it falls to a lower low instead he is going to lose face.  The last time the Chinese markets went into freefall it caused a flash crash in the US.  This time the crash will come but it won't be  flash.  It will go down and stay down according to my top model.

This could cause M+M to have its one final swoon as well. 

Don't forget about UVXY during this time!  UVXY LOVES rapid declines.  Remember, people have been shorting the VIX in the belief that the fed won't let markets crash.  As a result it was recently at record short levels.

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