Partying with Crazies

A request in this morning:

Dear Michael Covel,

I’m a financial professional analyzing the financial markets of any type. I’m working free, not dependent to ant company or institution.

During last 6 months, I aware of an important formation taking place in DOW. It’s the long term SHOULDER-HEAD-SHOULDER formation which will lead DOW to fall down well below 5,000 assumably 1,000 to 2,000 band within two years or three. I’m not sure how to read this decline and its consiquences [sic], which is very sharp, the second after 1929, maybe the first of its kind. It certainly lead to a crisis by affecting first USA markets and then soon the rest of the world. With this decline, DOW will reach the lower line of the “increasing trend path or band of all time” (100 years) and then a new era will start, and DOW will reach 10,000 points again in 10-15 years of time, and then it will reach 100,000 within next 50 years.

Note that this is just a forecast,as hundred thousands of analyst doing every day, but this is of its kind and a bit different then usual when you think of time span and its possible effects.

Wait and see, test and prove my view with no doubt it will happen. And of course make use of this view. I do not know what will be the triggers starting big drop but nothing will stop it.

In addition to SHOULDER-HEAD-SHOULDER (SHS) formation which I have been forecasting during last 1 year and wrote to you about it a few times, it recently seems that DOW is also experiencing a different formation of EXPANDING TRIANGLE. In fact they are both forming together, and will be pointing similar results when they are completed. Forming together increases the intensity of the resulting down movement.

First of all, majority of the analysts are agree on that DOW has completed its SUPERCYCLE UP MOVEMENT at 2000 at just below 12,000. Now DOW is oscillating for more than 10 years around 10,000 as it did it around 100 during 1929 – 1942, and around 1000 during 1965 – 1982.

The upper increasing formation line of the EXPANDING TRIANGLE passes through around 15,500 – 16,000 , if more time passes, higher the bound will be. Expanding triangles are powerfull formations , at the tops they reverse the trend. Whether DOW completed its cycle or not, after reaching the upper bound line, it will be pointing itself to the lower decreasing formation line as the last wave which, only GOD knows, will reach the lower line at well below 5,000, possibly at around 2,000. I’ll keep you informed on the day when it reaches the UPPER LINE, even at the hour when it’s doing it. I’m forecasting that it will be a day of its unique and own type: A very huge difference between up and low of the day with a record number of shares sell off, a market close around its lowest points of the day or even of the week or month. Then the market will be managed by bears for 2 -3 years. One more thing is that if DOW returns down without reaching the upper line, It’ll be a clue of MOST INTENSIVE DOWN MOVEMENT of the HISTORY AHEAD.

In summary,

-If DOW passes its top it made around 14,000 at 2007, SHS formation will have been spoiled and it will follow the EXPANDING TRIANGLE FORMATION, reaching at most 16,000, and then pointing down.

-If DOW returns down without breaking its top around 14,000, we ‘ll be saying that both formations are being fullfilled. Results will be the same, down to below 5,000 within 2-3 years.

-DOW will not continue increasing up as a primary BULLISH wave before around 2015 where it will reach at least 5,000.

Friendly speaking, I want to convert this forecast into cash. (It’s just a forecast before it occurs). I think such an info means trillions of dollar to you. That’s why writing to you. I think Soros fund management is the right place to make use of this info into cash in most effective way possible. Dear Michael, I appreciate if you share this forecast with George Soros himself, and could you both please reply this mail.

I am currently in a straight jacket with a drool bib on. When I get out–let’s connect.

8 thoughts on “Partying with Crazies

  1. This has got to be a joke. He is one of those crazies that comes out for the holidays or when the county fair comes to town. Then you don’t see him till the next holiday or fair. Tell him to go bug elliot wave international.

  2. Mike,
    Let’s not be so pessimistic, we need idiots like this to make money trend following.

    You can only help people who want to be helped.

  3. Currently, I am employing all kinds of geometric shapes into my trading: hexagons, trapezoids, a rhombus (both bullish and bearish), and a pentagram (only when I’m in a devilish mood).

    Michael, could you please pass this on to Bill Dunn.

  4. Who needs this forecast to make money? I’m way ahead of this guy. The plan: When my currently back-ordered flux capacitor finally arrives, I can throw it in the DeLorean and go back to the summer of ’08. I’ll short EVERYTHING in July, pyramid it on the way down, then reverse to long in QI of ’09. The “Back to the Futures” markets beat the regular futures markets anyday!

  5. “I think Soros fund management is the right place to make use of this info into cash in most effective way possible. Dear Michael, I appreciate if you share this forecast with George Soros himself”

    Pffffffft, I haven’t laughed so hard in a while.

  6. Unfortunately although this one is a gag, there are some people who trade off of this stuff.

    Probably an EW guy or one of Prechter’s tribe.

    Can I get the last 5 minutes of my life back please?

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