Clockwork Orange

It’s Primary {3} and we need a new label for those wave counts – so let’s give a warm (and long overdue) welcome to Clockwork Orange. The bearish scenario the bears have been patiently waiting to see for almost a year now. And one that Wall Street has its unique way of welcoming:

That’s right, the bears are back – like it or not. There will be a lot of pain – there will be blood – and there will be a lots of ass kicking mixed with generous helpings of bitch slapping. My advice to the bulls: Wear a cup – this will get ugly. To celebrate this occasion the Evil Lair has now officially been set into extra evil mode – which is one step below the max setting of turbo evil. Expect the worst – and if you’re a stainless steel rat – expect to profit.

Let me celebrate the occasion by sharing this little gem that’s starting to make the rounds:

This is right out of the Book Of The Dead [Markets] – on the left you see the 1987 crash which was preceded by a fractal pattern. One that is repeating itself right now. I sent it to Chris Carolan a few days ago and he came back with the little (but most important) tidbit about the Lunar Eclipse – again the timing is spot on. Mmmmhhh.. I wonder how it all ends this time – anyone buying the dip? 😉

Yes, Soylent Green is dead – we could see a little bounce here near term but medium term I think this market is going to fall off the plate. That is based on the level of bearish sentiment I see out there – and remember large scale drops happen in oversold conditions. Quite frankly I think we are heading into a perfect storm – bring a sweater.

That’s what I’m seeing on the Dow medium term. By the time Minor 3 of Intermediate (1) concludes I expect the Dow to trade in the 8000 range. That is probably when we’ll cover and wait for instructions – of course it’ll all depend on the wave pattern and I will keep everyone in the loop (no bi-monthly vacation for this blog host – ahem…).

Here is something I don’t see anyone talking about. Look at where medium/long term yields are at right now – the 10-year (TNX) is basically where it was at the end of Primary {1} in March of 2009. The 30-year (TYX) is trading slight above but is sinking quickly. What does that tell you about the medium term risk assessment of bond traders? And we have not even dropped yet! Admittedly I am not a bond trader, so if someone with a clue can chime in on this subject I would appreciate it.

Cheers,

Mole