Closing Bell: Little Do They Know

I wanted to throw this out there before we all head out for the weekend:

ThinkOrSwim was hosting an educational podcast after the market closed. Among others, ThinkOrSwim’s Tom Sosnoff and also Tim Knight from Investools, good friend of our blog, attended as host speakers. Everything Tim talked about was spot on – he basically laid out his bearish stance and how he had been trading the markets recently. Some people were surprised to learn that Tim was about to turn bullish for the coming weeks, which made me laugh. I guess once they put you in their little drawer you’re practically typecast for life. The fact that a bear can successfully exploit a temporary bullish consolidation rally seems to escape the scope of most people’s imagination.

Anyway, what really got me was when Tom Sosnoff kept repeating that the ‘worst was over’ and that we will never see anything like this again.

WRONG

Now, let me preface the following with this: I have complete and utter respect for Tom as he works day and night (and weekends) to build and maintain the world’s best trading platform – hands down. He also knows more about option trading than I will ever learn in my life. He has personally stepped in and went out of his way to resolve pressing trading related problems or questions in the past. Tom is a swell guy and I would never say anything bad about him. Nevertheless, in regards to the economic outlook for the coming years I beg to differ.

WHY?

Wave 5 of (3) will be nearly as bad as wave 3 of (3). After that we get a period of recovery, which will be wave (4) and some people will naturally confuse that with the beginnings of a new bull market. That might go on for a few months and then will be rudely interrupted by wave (5) of primary 1. This one will be ugly and it’ll take the averages down by at least 2000 points. And remember that we have 4 more primary waves to go – this is only primary wave 1 of cycle wave c. This bear market is just getting warmed up, and is not going to end until about 2014 or 2015.

So, if you have any delusions about things ‘getting better’ anytime soon out there – think again.

My apologies if I ruined your weekend by posting this, but the sooner you start making changes in your life the better you will be prepared further down the line as we are heading into the next Great Depression.

Then again – in the big scheme of things, none of this really matters:

UPDATE Sunday 2:00am EDT: Please watch Karl Denninger‘s new video: