Dow 17000 Update

The stock market is still topping out near the 17000 milestone in the DJIA.  Today there was a sharp reversal into the end of trading that suggests we might have passed the final high. In other words, we might have just passed the peak of Western Civilization:

Notably, a top at Dow 17000 is paralleling a peak at the psychologically important 6000, 11000 and 10000 benchmarks in the Dow Jones Composite, NYSE Composite and German DAX and respectively:

As for why mass mood extremes are reached coincident with the stock market reaching round number benchmarks, and as to why reversals from such tops coincide with seemingly exogenous geopolitical historical shocks, well these are very important questions to be answered.  As explained in my March 2011 blog, "Reversals from thousand marks in major stock indices & the anomalous motion of the planets", I believe the answers might be found in a mixture of quantum physics and religion.

One of the more difficult elements of the Abrahamic monotheist religions that dominate the world's belief systems is the notion of prophecy. Whether it be Judaism, Christianity or Islam, there is a common thread that history unfolds according to a set story purportedly authored by God the "Creator". Such a sense of historicism is anathema to the modern secular, materialistic worldview that holds history to be open-ended and authored by man's will rather than God's will. But what if the latter is truly the case?

The Elliott Wave Principle is premised upon the idea that mass mood swings unfold in the form of a deterministic, fractal-based pattern:

But why a fractal?

This is where things get interesting.

Fractals and the Holographic Principle go hand in hand.  Holograms are three-dimensional images recreated on a two-dimensional surface.

The essence of the Holographic Principle is very simple.  It is all about encoding information from a space in "n" dimensions into a space of "n-1" dimensions.  This is exactly what a holographic image does, allowing a view of a three dimensional object on a two dimensional surface, for example. [source]

What's interesting about a hologram is that if you break up the two-dimensional surface, i.e., the holographic plate, each piece will still recreate the whole three-dimensional image but with less resolution.  This is conceptually parallel to fractals.  If you break a given fractal into pieces, each piece still contains the whole fractal.  Just consider the Elliott Wave pattern above.  Each part contains smaller scale versions of the whole up-down pattern.

Science is currently discovering that our universe appears to be a hologram.  What if the information for our universe from beginning (Alpha) to end (Omega) is a four-dimensional image etched on the surface of three-dimensional space that we "measure" with our senses?  In other words, what if we are characters in a book reading a story already authored from beginning to end by an Author (God)?



Who is the Author?

Dow 17000 & The Peak Of Western Civilization?

“Pride goes before destruction, And a haughty spirit before a fall.” - Proverbs 16:18

“In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule.” - Friedrich Nietzsche

Today was a seemingly uneventful day in the stock market with the DJIA closing up 18.82 points to a closing all-time high of 16,943.10 on relatively light trading volume. Yet, there's a possibility that today will prove to have involved one of the most important events in human history: the all-time top in the U.S. stock market and, in turn, the effective peak of Western Civilization. Here's why I think so.

As noted in Sunday's blog, "Is The Greatest Turning Point In Human History Near-At-Hand?", at the end of last week Robert Prechter of Elliott Wave International released an alert that "there is a strong probability that the last all-time high in the Dow for years to come will register today". While Prechter may have been early in making his call, I believe the final piece of the puzzle came together today to mark the final top in the stock market.

In my Master's Thesis, "Manic Depressive Man", I posit that our species suffers from a "creative genius syndrome" known in psychiatry as a "bipolar disorder".  This form of collective insanity manifests as large-scale historical swings between mass manias of creative human activity and social depressions involving prolonged economic stagnation, general despair and destructive human activity.  A simple example of this cyclical historical pattern of social behavior occurred between the 1920s and 1940s.  The "Roaring Twenties" involved a period of rapid technological and economic development that peaked in 1929.  This top was followed by the October '29 Great Crash on Wall Street, the 1930s Great Depression and then the Second World War.

Thus, while reigning market theories of the day are fixated on the rationality of man and efficiency of markets, the historical reality is the opposite, i.e., human irrationality and recurrent bipolar waves of market instability are the rule.  (This is because the current leading financial and economic theorists are caught up in the collective insanity and their extraordinary popular delusions serve to reinforce the overall self-destructive trend.)

In the context of my 'manic depressive man thesis', my diagnosis highlights the importance of watching for bipolar "Elliott Waves" movements in stock prices, contrarianism and utilizing indicators of mass mood extremes to ascertain historical turning points and, lastly, topping patterns at psychologically significant thousand levels in major stock indices like the DJIA.  As for Elliott Wave patterns and psychological indicators of mass mood extremes, Robert Prechter's Elliott Wave International keeps timely track of historical conditions.  So rather than reworking the wheel on these elements, I invite readers to go to ElliottWave.com where, as of the time of this writing, a two-week free trial is available for anyone who wants a thorough update on where the world currently stands. Robert Prechter is offering free access to his work at this time because he understands, as I, that we likely have just completed or are about to complete the run-up in stock prices and associated mass mood from the extreme low reached in March of 2009 in association with the global financial panic and economic breakdown into that historical juncture.  In the broad Elliott Wave context and as noted in my weekend blog, this means the final top in U.S. stock prices likely forever.

What Elliott Wave International does not highlight is the role of psychologically important thousand marks in determining major historical turning points, and it is to this element that I'd like to now turn your attention.

As readers of my blog and viewers of my videos have long been exposed to, I pay close attention to when the stock market reaches and reverses from key thousand mark levels in widely watched U.S. and international stock indices. This is because such junctures not only mark key turning points in financial trends, they also tend to coincide with major historical "shocks" that set in motion major trend reversals.  These shocks can be completely "exogenous" (a fallacious term) to financial markets and the economy, e.g., geopolitical crises, outbreaks of war, etc.

Here's three notable historical examples I often cite.

Between 1966 and 1982, the DJIA went up to the psychologically important "Magic 1000" barrier and reversed course multiple times.  Each major reversal off Dow 1000 involved significant bear markets with the stock market falling 20%+ five times.  Each of these bear markets involved all kinds of negative historical events and trends from the Vietnam War to oil shocks to Watergate.  This included the major reversal in the autumn of 1973 associated with that year's Yom Kippur Arab-Israeli War and the subsequent OPEC oil embargo which drove the DJIA down by 40%+ in a year's time and precipitated the worst economic downturn since the Great Depression up to that point.



Likewise, in the summer of 1990 the DJIA reversed from the psychologically important 3000 mark (reaching a closing all-time high that year of 2999.75 on July 16th and July 17th) and fell by 25% by October of that year.  This trend reversal took the form of Iraq's invasion of Kuwait, a significant oil-shock and the 1990 Gulf Crisis which pushed the economy into a recession.



A final profound example occurred in the autumn of 2001 when, just after the DJIA reversed below the psychologically important 10000 mark on September 6th of that year, Wall Street broke hard with the 9/11 terror attacks on the World Trade Center towers and Pentagon:


As for the current juncture, this afternoon the DJIA came within 30 points of the psychologically important 17000 mark:

The Dow Jones Composite index got as high as 5999.37:

And overseas, the German DAX closed above the 10000 mark for the first time in history:

Is the same historical pattern repeating here, i.e., the stock market is peaking at psychologically important thousand marks in key indices?  If so, will a reversal come in the form of some seemingly exogenous geopolitical shock?

What's important to consider is that, per the Elliott Wave Principle, this is no ordinary top but rather a peak of unprecedented historical scale that should be followed by a 99%+ collapse in stock prices in a very brief period of possibly two years per Robert Prechter's recent special alert.

Hence my use of such strong language in current writings, i.e., that Western Civilization is peaking.  Not only are we looking at a peak of Western Civilization here, the form a reversal will take could very well be apocalyptic in nature, and this is where the rest of my work concerning Russia's strategic deception of the West for the purpose of unleashing a surprise nuclear third world war may unfortunately prove prescient.  We may very well be looking at the cataclysmic end of "capitalism" in the not-too-distant future.

God have mercy on our souls...

Reversal From Dow 13K, Nasdaq 3K & Purim

UPDATE: The day after Purim 2012 the current round of Arab-Israeli violence began starting with an IDF airstrike in Gaza that took out two key militant leaders.

The DJIA and Nasdaq Composite stock indices reversed decisively from the psychologically important 13K and 3K marks today, respectively:





The Nasdaq Composite reached a high of 3000.11 on March 1st and the DJIA closed at 13005 on February 29th. This may have been the Elliott Wave Primary wave-2 peak in mass mood before the Apocalypse Wave that may now be underway with today's sharp drop in stock prices.

[Other stock markets around the world: UK 6K, Germany 7K, Japan 10K, South Korea 2K, Taiwan 8K, Singapore 3K, Indonesia 4K.]

As explained in my thesis and reiterated in this blog time and time again, reversals from psychologically significant thousand marks in major stock averages often correspond with major historical shocks like the 1973 Yom Kippur Arab-Israeli War, Iraq's 1990 invasion of Kuwait and the terrorist attacks against America on 9/11:







What about this time around?

Again, the major concern is that, according to the Elliott Wave Principle, the next leg down in mass mood should be what I've dubbed the "Apocalypse Wave":





As can be seen above, according to Robert Prechter, the "Elliott Wave Theorist", a 90%+ collapse in U.S. stock prices is being projected according to the Wave Principle.

Where would such an epic collapse in mass mood come from?

Obviously that's what I've been trying to warn the world about for literally half of my life since suffering an apocalyptic vision in February of 1991 that began with seeing a special report of a chemical SCUD missile attack on Israel.



Is it possible the world is now about to experience what I foresaw 21 years ago?

I hope and pray not.

However, here is an interesting tidbit of information that seems to suggest Israel might strike Iran's nuclear sites sooner than later....an action that could result in what I foresaw in 1991.



On Thursday the Jewish holiday of Purim will occur that commemorates God's salvation of the Jewish people from annihilation by the Persians as accounted for in the Old Testament's Book of Esther.

Here's what's remarkable about Purim in recent history (list of Purim dates):

1. Purim 1991 (2/28) - The first war against Iraq ends.

2. Purim 2003 (3/18) - The second war against Iraq begins (actually next day: 9:34 p.m., March 19 EST).

3. Purim 2008 - (2/21) A 7.2-magnitude earthquake hits western China.

4. Purim 2010 (2/28) - An 8.8 earthquake strikes Chile (actually 2/27 - Purim began at sunset that day - sixth largest earthquake ever to be recorded by a seismograph).

5. Purim 2011 (2/20) - NATO military intervention in Libya begins. (Intervention began the night of 2/19 which was precisely when Purim begins, i.e., after sunset. Interestingly, if you turn the word Libya into Hebrew letters, it spells 'G-d's heart' (לב-יה). Also note that days prior, on 3/11/11, Japan suffered a 9.0 earthquake and massive tsunami.)

What about 2012 (March 8)?

Well, maybe it is telltale that during Israeli Prime Minister Netanyahu's visit to the White House yesterday, in which the possibility of an Israeli strike on Iran was the primary topic, the Jewish leader left a decorated scroll telling the biblical story of the Book of Esther as a gift.

Was Benjamin Netanyahu signaling something?

Regardless of the when and where of what is about to unfold, the important point is that Israel and America need to be aware they are coming under God's judgment for their "sin", i.e., for rebellion against God in their relentless pursuit of Mammon:





[Korea also bears watching, especially given my Global Bipolar hypothesis and the implications of the Taegeuk yin-yang symbol on the South Korean flag along with the fact that the Korean DMZ is the last active battle line between the Communist East and Capitalist West. Note how three Asian stock markets likely to be impacted by Korea have just reversed from key thousand marks in their major averages: South Korea, Taiwan and Singapore. The bottom line is this, there's a reason that America's enemies have been given the upper hand to deceive, destroy and subjugate us in the name of Communism (care for thy neighbor as thyself) and Islam (submission to God's will).]

DJ Composite retesting 4K mark again

Today we retested the 4000 mark in the Dow Jones Composite again and then started to reverse course:





I blogged in late-August and again in late-September that 4K on the DJ Composite is marking significant turning points in the stock market and mass mood:





Last December I examined the historical record concerning reversals from thousand marks in the Dow Jones Composite. Here's the instances I highlighted:







The 1987 stock market crash, Saddam Hussein's 1990 invasion of Kuwait, the 9/11 terrorist attacks in September 2001 and the Autumn 2008 financial crisis all coincided with reversals from key thousand marks in the Dow Jones Composite. This is the same sort of pattern observed with reversals from thousand marks in the Dow Jones Industrial Average (DJIA) as examined in my thesis about 'Manic-Depressive Man'.

What will the current reversal from the 4000 mark in the DJ Composite mean for the world? Obviously, we will soon find out. While most watching financial markets are focused upon troubles in Europe, my sense is that the Middle East might soon prove far more relevant to any unfolding mass panic. Why? It's all about man's "global bipolar disorder". (Consider the Middle East as the limbic system, i.e., the center of mass emotion, in the mind of man. It is a potential trigger point when conflict arises between the bipolar global hemispheres.)

Unfortunately, because everyone around me is, by my own definition, insane, almost no one comprehends the truth I've been revealing. Just consider how, at the current juncture of gross mass delusion, economic "science" is focused upon "general equilibrium", "rational expectations", "efficient markets" and stock prices following a "random walk". Could science be any further from an accurate historical assessment of man's own nature?! (And I'm the crazy one?)

Reversals from thousand marks in major stock indices & the anomalous motion of the planets...

“My dear Kepler, what would you say of the learned here, who, replete with the pertinacity of the asp [a viper], have steadfastly refused to cast a glance through the telescope? What shall we make of this? Shall we laugh, or shall we cry?” - Galileo

"For the wisdom of this world is foolishness with God. For it is written, 'He catches the wise in their own craftiness'; and again, 'The Lord knows the thoughts of the wise, that they are futile.'" 1 Corinthians 3:19-20

In the early 17th century, when Galileo peered through his telescope and noticed moons were circling Jupiter, he recognized that he was observing "smoking gun" evidence that the earth is not the center of the universe. Up to his time, the dominant theory of reality was based upon a geocentric model that made a good deal of sense, i.e., it explained why we observe the sun, moon and stars rising and setting day in and day out. This "man-centered" idea was enthusiastically adopted by the Catholic Church and enforced as 'the truth' for centuries, and those who dared to question the "orthodoxy" were deemed heretics and faced arrest and punishment as occurred in Galileo's case.

Yet, the actual truth had been put forth by Copernicus in his text, On the Revolutions of the Celestial Spheres, in 1543. Copernicus offered a heliocentric model of our solar system that could better explain astronomic observations up to that time. In particularly, Copernicus offered a model that could account for the movement of the sun, moon and stars AS WELL AS the anomalous motion of the planets, the so-called wandering stars, that were not consistent with the earth-centered model of reality. The Catholic Church had condemned Copernican heliocentrism as "false and contrary to Scripture", but eventually, thanks to the self-sacrificial pursuit of truth by men like Galileo, the evidence won the day and thus began the Scientific Revolution.

Thus, over the last four centuries, "secular" science and materialism has come to dominate man's perspective about the universe within which we dwell. According to this view, the universe began with a "Big Bang" and has since been randomly flowing toward ever greater disorder and meaningless. (Yet....as far as we know the 'straight path' of motion from the moment of Creation has led directly to us and meaningful life!) Thus, from this perspective, man is the source of supreme "intelligence" bringing order to our universe while the ideology of God and His Church have been nearly defeated as "religious authorities" cling to their simple-minded perspective of a providential reality:




The problem is that this "secular" world view is essentially delusional. (The more intelligent the man, the greater the aptitude to outsmart oneself!)

This is being revealed by the discoveries of those studying "reality" in its most essential form, i.e., quantum physicists. According to quantum physics, the universe we observe is a consequence of our observation. If we weren't "measuring" reality with our perceptions, the universe is a determined wave function, a perfect story that's already been written by "God". It is only because our comprehension of the universe is derived from perceptions that we experience the seemingly probabilistic particulars of relative motion and "change" over time:

So we see that all the underlying properties of matter which are used to infer the existence of particles can be explained by the properties of the wave function alone. This means there is no evidence for particles (because the wave function can account for all the particle-like properties). (SOURCE: Understanding Quantum Mechanics & Its Implications)

This is "the truth", and now we are likely to see another historic example of 'anomalous planetary motion' I've been pointing out for some time that hopefully will eventually lead to a new revolution in popular thought and man's perspective on "reality".




Here's three classic examples of the historical pattern I believe is key in showing wave-particle duality on the human scale:







Did the Arab's launch a surprise attack against Israel and implement an oil embargo in the autumn of 1973 because the DJIA reversed from 1K?

Did Iraq invade Kuwait in the summer of 1990 because the DJIA reversed from 3K?

Did terrorists carry out 9/11 because the DJIA reversed below 10K in the autumn of 2001?

Of course not. The "historical shocks", i.e., seemingly probabilistic particular events collectively experienced in human history, emerged in fulfillment of an underlying deterministic trend reversal in mass mood.

So where are we now?


The DJIA is on the verge of a reversal from 12K:

---

EUROPE

Britain's FTSE has reversed from 6K:



France's CAC has reversed from 4K:



Germany's DAX has reversed below 7K:



Europe's composite STOXX index has reversed from 3K:

---

ASIA

Australia's All Ordinaries index has reversed from 5K:



Japan's Nikkei is about to reverse below 10K:



China's SSE has reversed from 3K:



Taiwan's TSEC has reversed from 9K:



Korea's KOSPI has reversed from 2K:



The key difference is that this time around the next "wave" down is an Elliott Wave Primary-degree third wave of Grand Supercycle scale, what I've dubbed the "Apocalypse Wave", so the associated historical events about to unfold will be historically unprecedented in magnitude:




Literally, we may experience the fulfillment of biblical "End Times" prophecy in the time to come. Indeed, that the "Apocalypse Wave" appears to be kicking off with a devastating, historic earthquake and tsunami in the Pacific may be telltale:



The seismic shift in mass mood unfolding is literally an act of God.

Of course, a key question is: How is it the future was foretold thousands of years ahead of time unless what we experience as history is already written? Only the Author can know future chapters before they unfold, although characters in the book may be provided some revealed insight (divine foreshadowing).

There's a reason what is about to occur is called the "Apocalypse":

An 'Apocalypse' ("lifting of the veil" or "revelation") is a disclosure of something hidden from the majority of mankind in an era dominated by falsehood and misconception, i.e. the veil to be lifted.

Are there any true scientists still out there?



Or is man simply too high on himself at the current juncture. That may be about to change IMHO, because God , not man, is the true AUTHORity in this universe.

The Coming of the Son of Man

“And there will be signs in the sun, in the moon, and in the stars; and on the earth distress of nations, with perplexity, the sea and the waves roaring; men’s hearts failing them from fear and the expectation of those things which are coming on the earth, for the powers of the heavens will be shaken. Then they will see the Son of Man coming in a cloud with power and great glory. Now when these things begin to happen, look up and lift up your heads, because your redemption draws near.” [Luke 21:25-28]

IMHO, the universe is a four-dimensional image embedded on a three dimensional surface that we experience (measure) as an illusory reality over all time (eternity). The Author of that image was/is God, and the meaning of the story to be realized is LOVE.

A Telltale Chart?

In his interview with Bloomberg (3:30 minutes in) yesterday, Robert Prechter mentioned that the stock market was correcting in a pattern comparable to right before the October 1987 stock market crash. Curious about this, I've created a chart that shows the parallel:



Here's the complete crash pattern in 1987:



The timescales are different, but as market analogies go, if this pattern holds true then the stock market is within days or weeks of an '87-style stock market crash. (That this may be the case is also suggested by a "Hindenburg Omen" which just occurred.)