In March 2020, it closed at 17.70 following a massive upside reversal week with a low of 10.60 to a high of 19.29.
Perhaps that week’s high price was an omen.
Following Wednesday night’s earnings report, FSLY skidded to a close of 1920.
Individual stocks have crashed. But, remarkably, there’s not a whiff of panic in the air.
Why? Because market participants (retail) are in ETF’s.
It’s a stealth crash.
So stealth that investors are pouring money into equity funds.
Why?
Because the story of this century is you were a fool if you sold in the Dot Com Debacle.
You were a fool if you sold in the Great Financial Crisis.
You were a fool if you sold in the March 2020 Covid Crash.
The market always comes back.
Few trading today ever experienced a bear market that plays out in TIME…
Like the decade of the 1930s.
It took 25 years for the DJIA to eclipse its September 3, 1929 peak.
Or the decade of the 1970s.
In a nutshell, we are only got here because of a theory, Modern Monetary Theory. The market went from PE… Price Earnings to PF… Price Fantasy.
Where was the concern over the last 23 years as the academics were blowing this bubble up?
The Fed is the wet nurse that perpetuated this for their constituents… the ones who own them — the Banks.
Now our economy is facing perils that we have never seen.
Succinctly, this looks like the biggest top since 1720 and the South Sea Bubble.
That was 302 years ago.
If you anchor “0” to 302 on the Square of 9 Wheel of Time & Price, it is 180 degrees straight across and opposite Feb 23/24.
As we’ve been saying for a month, cycles should exert their downside influence into this time frame:
It is 90 days/degrees from the orthodox high, November 22 (11/22… the two master numbers that vibrate off each other… 11 and 22).
This time frame is also 90 degrees square the SPY ATH.
So there is beaucoup synchronicity with next week.
This also ties to the Gann Panic Cycle and is analogous to the first crash on October 24.
It must be said that it pays to key off the weeklies as the Big One came on October 29 despite the Panic Window having “closed.”
Next week also ties to October 19, 1987.
Actually, it must be said that the Panic Window in 1987 “closed” on Friday, Oct 16.
As I said, it pays to key off the weeklies.
Plus or minus one bar can make a big difference when dealing with hurricanes.
It is not just a financial panic cycle we are staring in the face but a political panic cycle. When you have the kind of protests in Canada that you are seeing and the reaction to those protests, you know that something extraordinary is on deck.
Loss of confidence in governments as to Covid is occurring in tandem with generational inflation.
As a result of this loss of confidence, precious metals are coming out.
Below is a weekly chart of GOLD (Barrick). Last week it came out and followed through with authority this week.
If GLD follows suit, it opens the door to 183 which is 180 degrees up, straight across and opposite from the 157 low for the 18 month consolidation.
Both 157 and 183 align with the month of February.
Hence, the presumption is we are in the midst of a fast move that may get faster.
In sum, all the powers that be have to do is guarantee Putin that Ukraine will not become a part of NATO.
We didn’t stand for Russian missiles being placed in Cuba 60 years ago.
Instead, Putin is being pushed into invading by not giving him anything so he doesn’t lose popularity in Russia.
Why push Putin? Probably as a distraction for inflation and the bubble popping.
While the Fed may be content to see the market go down an escalator, it is in jeopardy of taking the elevator down.
With market capitalization 3 X US GDP, the Fed may be “forced” do back off from their hawkishness and do what they do best — Control P.
That’s what they have resorted to this century and blown up asset bubbles in each instance.
They may do so yet again… creating the possibility of a last ditch run for the roses.
The next month should hold the key as to whether or not this premise holds water.
A meltup is not a scenario that Gann’s Master Time Factor in league with a cluster of several other major cycles indicates, but we’ve never been here before.
Indeed, VXX suggests we may be in the eye of the storm.
A daily SPX shows the bearish Triangle Pendulum pattern… a false upside breakout followed by a turn down below the triangle.
