Dow 17000 & World War Three?

The DJIA peaked out on July 3rd, closing above the psychologically important 17000 mark for the first time in history, and is now reversing course closing below 17K today:

Although I was a little early in calling the peak of Western Civilization in June, it is now starting to appear that the final top is in place.  Immediately with this reversal at Dow 17000 there is news of war erupting between Israel and Hamas in the Gaza Strip.

Last week, three kidnapped Israeli teens were found dead and Hamas started hitting southern Israel with rockets.  Consequently, earlier today Israel initiated a major military campaign against Gaza, dubbed "Operation Protective Edge", and Hamas has responded with an ongoing, expanded missile barrage against southern Israel that has included strikes on Tel Aviv and Jerusalem. The Israeli Defense Forces (IDF) has called up 40,000 reservists for a possible ground incursion into Gaza in the face of the growing missile onslaught by Hamas.

As has been highlighted in this blog many, many times, reversals from psychologically important thousand marks in key stock indices like the DJIA are often followed by major geopolitical shocks.

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, not only is the DJIA reversing from the 17000 milestone, the Dow Jones Composite, NYSE index and German DAX are turning down from the 6000, 11000 and 10000 marks, respectively:

Furthermore, this reversal likely comes in the wake of a historically important Grand Supercycle peak according to the Elliott Wave Principle.  What I believe constitutes the peak of Western Civilization:

In the wake of this peak, we should expect the collapse of Western Civilization.  In fact, the wave patterns that have unfolded indicate that what's most likely to occur is a rapid crash more so than an extended collapse.

What form could this crash take?

Honestly, I wouldn't be surprised if the current conflict between Israel and Hamas is leading up to what I foresaw 20+ years ago in my apocalyptic vision: chemical SCUD missiles slamming into Israel followed by a global nuclear war.

IRAQ SAYS 'TERRORISTS' SEIZE CHEMICAL WEAPONS SITE
Jul. 8, 2014 5:43 PM EDT 

UNITED NATIONS (AP) — Iraq has informed the United Nations that the Islamic State extremist group has taken control of a vast former chemical weapons facility northwest of Baghdad where 2,500 chemical rockets filled with the deadly nerve agent sarin or their remnants were stored along with other chemical warfare agents. 

Iraq's U.N. Ambassador Mohamed Ali Alhakim said in a letter to U.N. Secretary-General Ban Ki-moon circulated Tuesday that "terrorist" groups entered the Muthanna site June 11 and seized weapons and equipment from the protection force guarding the facility. 

He singled out the capture of bunkers 13 and 41 in the sprawling complex, which according to a 2004 U.N. report also contained the toxic agent sodium cyanide, which is a precursor for the chemical warfare agent tabun, and artillery shells contaminated with mustard gas.

Islamist Syrian rebels reportedly seize Saddam's CBW Scud missiles in Deir el-Zour - http://toi.sr/14fq7SL  via @timesofisrael

Does the Islamic State have a Scud missile? | via @Telegraph http://fw.to/C5Ugvog 

ISIS Parades Scud Missile 'Heading Towards Israel' - Middle East - News - Arutz Sheva http://www.israelnationalnews.com/News/News.aspx/182409 …



God have mercy on our souls...

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...

Is The Greatest Turning Point In Human History Near-At-Hand?

"Those who cannot remember the past are condemned to repeat it" - George Santayana
For regular leaders of my blog, you've seen from time to time that I reference my "Manic-Depressive Man" thesis and provide commentary drawn from the Elliott Wave Principle.  We may now be at one of the most important historical turning points ever based upon my unique perspective.

ELLIOTT WAVE PRINCIPLE UPDATE

"Given the terminal nature of the entire wave from the 2009 low, there is a strong probability that the last all-time high in the Dow for years to come will register today. The extremely low volatility of recent months is likely to transition to the greatest volatility ever recorded for U.S. stocks.  Our timing work suggests that wave c to the downside will be relentless and do its damage over a brief span of two years." 

- Rober Prechter, Elliott Wave Theorist interim report, 6/6/2014

The Elliott Wave Principle was developed in the 1930's by Ralph N. Elliott, an accountant by profession, who was bedridden for long periods of time due to chronic illness and took that time to analyze stock price charts in the wake of the 1929 Great Crash to determine if there was any recurring patterns.  From this, he formulated Elliott's "Wave Principle" that the stock market generally proceeds in a path of three steps forward with two steps back on recurring scales of magnitude that is depicted like this:

In the 1970's and 1980's, Elliott's Wave Principle was uncovered and popularized my market technician Robert Prechter who eventually started Elliott Wave International headquartered in Gainesville, GA, that has since become the world renown authority for analysis of global markets utilizing the theory.

I will not attempt here to reexplain the Wave Principle and its many rules and tenets but instead encourage any one interested in further learning to ElliottWave.com and Robert Prechter's advisory services for a thorough explanation of the theory and its current application to global markets.  Robert Prechter has invested his life into developing and bringing to global light this most important social SCIENCE of mass human thought and behavior and you will do yourself a great disservice by failing to take advantage of an opportunity to learn more.  (No....I'm not a paid shrill, but I am an admiring fan of Prechter's ingenious work.)  For those with insufficient funds or interest, Wikipedia has an excellent overview of the Wave Principle.

What's critical is that, at the current juncture, the Elliott Wave Principle is signalling we are currently reaching the ultimate historical top....what is aptly described as the peak of Western Civilization:

In the context of this long-term topping process, we are now at or near the end of the rebound in mass mood and stock prices since the Spring 2009 low (see Prechter's quote above).  

What does this mean?  

That's the $100 trillion question I'd like to answer here now.

First off, let's consider the authoritative perspective of Elliott Wave International:

Above is the opening section of the latest Elliott Wave Financial Forecast which was released Friday.  

As you can see, the view is that the DJIA, which closed just below the psychologically important 17000 mark last week, is "TOPPING".  Following this top, a drive in stock prices down to below the 400 mark on the DJIA (and that's really 400....not 4000) is anticipated according to the tenets of the Wave Principle.

What could cause such a massive collapse in the DJIA?

For the answer to that we first must consider what the DJIA represents.  The DJIA is a market index derived from the equity share prices of 30 of the largest U.S. corporations.  In this way, it is a price measurement that represents the earnings and well-being of the U.S. economy.  A rising DJIA means rising stock prices in general and climbing earnings anticipations for big business, i.e., it implies rising collective confidence and optimism for American capitalism.  Likewise, a falling DJIA implies an upset of collective confidence and growing pessimism for American capitalism.

Thus for the DJIA to fall from 17000 to below 400 in a matter of a couple of years from now, some sort of drastic upset of investor confidence in U.S. capitalism would need to occur.  Where could such a historic upset come from?

 That's what I've been trying futility to warn this world about for the past 20+ years! Western collective confidence in capitalism has been intentionally pushed to irrational heights by Kremlin strategic deceptions for the very purpose of a total upset in the form of a surprise nuclear third world war.

“One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It’s simply too painful to acknowledge, even to ourselves, that we’ve been taken. Once you give a charlatan power over you, you almost never get it back.” - Carl Sagan

AND THEN THE LAWLESS ONE WILL BE REVEALED, WHOM THE LORD JESUS WILL OVERTHROW WITH THE BREATH OF HIS MOUTH AND DESTROY BY THE SPLENDOR OF HIS COMING. [2 THESSALONIANS 2:8]

An Apocalypse (Greek: Ἀποκάλυψις Apokálypsis; "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. In a rather common-sensical way the term is associated with an eschatological final battle, the Armageddon, and the idea of an end of the world due to out of time. This perceptions may better be related to the phrase apokalupsis eschaton, literally "revelation at [or of] the end of the æon, or age". In Christianity The Apocalypse of John is the Book of Revelation, the last book of the Bible. (Wikipedia)