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Red Dragon Leo

Link to Red Dragon Leo - Stock Market Trading on the Darkside

When will the stock market bubble burst?

Posted: 20 Jan 2014 07:25 AM PST

When will the stock market bubble burst?

…by Ali Firoozi Yasar

Hello folks!

Hope all is well with you guys.  I know it has been a long while since I last posted on Red’s blog.  I have been super busy at work, so my apologies for the long absence.  But now it’s important to get you all this update as the time is near.

The stock market is at a critical moment!  Goldman Sachs has suddenly decided to warn all of us that the stock market could decline by 10 percent or more in the coming months!  But are they just honestly trying to warn their clients that the stocks have become overvalued at this time or is it just another agenda at work?!

Whether it is an agenda or not the stock market has just entered a very dangerous zone.  Stocks are massively overpriced and investors have been borrowing huge amounts of money to buy stocks.  Consequently, the margin debt at the New York Stock Exchange is truly at a crazy level!

These kinds of behaviors and signs actually indicate that another bubble burst is on the way.  On top of that the state of overall U.S. economy is getting worse while the market is soaring to new highs.  It is not a good sign folks.  The U.S economy is in a very bad condition now, in fact it’s in a much worst condition then it was the last time we had a major crash back in 2008.

Employment is much worse now that it was at that time and the U.S banking system is more ailing with more debts than it was back then.  It owed about 10 trillion dollars but today the debt has increased to more than 17.2 trillion dollars.  The market keeps on fooling the masses with this illogical bubble, but this “fooling” can’t continue.

I highly suspect this massive stock market bubble will not last for much longer, and a lot of financial market experts are now advising and warning their clients to prepare for a substantial pull-back.  You see the market was manipulated by the Fed in early August when a dramatic decline was due.

A lot of people had already been aware of that, which was probably the reason for the delay until now.  The bottom line is… the energy of the current run has fully been drained and the Fed is not able to fight it any more.

Actually, it can be likened to a man who has been holding a big weight over his head for a little while but now his energy is getting depleted.  So he takes a quick shot of Adrenaline to keep him going a little longer (aka “more printed money secretly injected into the market… [most likely]), and you know it’s his 4th, 5th, 6th shot or more?  With each time the effects last a shorter time compared to the one prior, and I think this is the last shot before the weight is dropped!

S&P500 monthly(business model) copy

As mentioned above, the market was manipulated by the Fed in early August and it has been tolerating the burden since then.  They are not able to hold it up anymore.  This is actually what I see in the S&P500 based on the cycle work and harmonics.  I am afraid I cannot give out much information here as it could be leaked and copied.

S&P500 daily2

I believe the market will put in another high but the length of the rally will be relatively smaller, then a sharp decline to the 1350 area is possible.  After that, a rally back up to new highs (the 2100 area is very possible) will probably follow.  You see, it can be a huge opportunity to enter the market with a large short position when the time is right.  As soon as the decline kicks off there will not be a major pullback to re-enter so you would want to make sure not to miss the ride at the very top.

S&P500 weekly2

S&P500 monthly3

May you profit handsomely,

Ali

Email: info@divinechartpatterns.com

http://ift.tt/MgV9sa

____________________________________________________________

The Date For The Coming Crash Has Been Given To Us By The Elite Themselves

…by Red

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