Source Editor’s Note…
“Cycle analysis indicates the US Market Cycle is presently completing a 33+ year Bull Market Cycle and once complete, a Deflationary Bear Market Cycle will grip the US Markets in the year 2015 that will DEVASTATE the World…
Before a Deflationary Cycle grips the US Market and the World, FIRST expect an Inflationary Gold spike to $2000 catching everyone off guard and leaving all but the resolute Gold and Silver Bulls behind!…
Unlike the previous recession that followed the collapse of 2008, there is no way out of this one! The time to finalize preparations for what’s coming is NOW….
It’s going to go from bad to worse to terrible and our World as we know it will change forever!…
A $1300 Gold price is soon to be history as Gold Spikes into $2000 before year end as the third and final Gold cycle of 7-years in to 2020/21 and $10,000+ gets under way!”
Submitted by Bo Polny:
Dear Gold Friends,
Bear & Bull Cycles are Cycles in nature and have been a constant for centuries. These Bear & Bull Cycles precede all Events including Events of price manipulation, war, natural disasters, plague, FOMC announcement, etc. Events are necessary and are what allow Bear & Bull Cycle to complete. Cycles in nature came first and Events are secondary always!
That said, Cycle analysis indicates the US Market Cycle is presently completing a 33+ year Bull Market Cycle and once complete, a Deflationary Bear Market Cycle will grip the US Markets in the year 2015 that devastates the World.
As stated in the May 14, 2014 forecast, Cycle analysis indicates Gold at $2000 before year end and secondly the Stock market will NOT crash in 2014 based on what I called ‘fundamentals’… the fundamental of money printing!
Both a Head and Shoulders chart pattern in combination with a Megaphone Top Chart Pattern are forming on the US Markets and Cycle analysis indicates once these chart patterns complete expect a devastating deflationary Bear Market Cycle crash next year… 2015!
Cycle Analysis further indicates before a Deflationary Cycle grips the US Market and the World, FIRST expect an Inflationary Gold spike to $2000 catching everyone off guard and leaving all but the resolute Gold and Silver Bulls behind!
Tech Analysis and Definitions of a Head and Shoulders Top & a Megaphone Top Chart Pattern
On the technical analysis chart, the Head and Shoulders formation occurs when a market trend is in the process of reversal either from a bullish or bearish trend; a characteristic pattern takes shape and is recognized as reversal formation. – From Wikipedia, the free encyclopedia
1. A Head and Shoulders Top
Head and Shoulders formation consists of a left shoulder, a head, and a right shoulder and a line drawn as the neckline. The left shoulder is formed at the end of an extensive move during which volume is noticeably high. After the peak of the left shoulder is formed, there is a subsequent reaction and prices slide down to a certain extent which generally occurs on low volume.
The prices rally up to form the head with normal or heavy volume and subsequent reaction downward is accompanied with lesser volume. The right shoulder is formed when prices move up again but remain below the central peak called the Head and fall down nearly equal to the first valley between the left shoulder and the head or at least below the peak of the left shoulder.
Volume is lesser in the right shoulder formation compared to the left shoulder and the head formation. A neckline is drawn across the bottoms of the left shoulder, the head and the right shoulder. When prices break through this neckline and keep on falling after forming the right shoulder, it is the ultimate confirmation of the completion of the Head and Shoulders Top formation. It is quite possible that prices pull back to touch the neckline before continuing their declining trend.
Importance of neckline
The drawn neckline of the pattern represents a support level, and assumption cannot be taken that the Head and Shoulder formation is completed unless it is broken and such breakthrough may happen to be on more volume or may not be. The breakthrough should not be observed carelessly. A serious situation can occur if such a break is more than three to four percent.
When a stock drifts through the neckline on small volume, there may be a wave up, although it is not certain, but it is observed, the rally normally does not cross the general level of the Neckline and before selling pressure increases, the steep decline occurs and prices tumble with greater volume.
2. Megaphone Top Chart Pattern
A Megaphone Top also known as a Broadening Top is considered a bearish signal, indicating that the current uptrend may reverse to form a new downtrend.
A Megaphone Top is a relatively rare formation and is also known as a Broadening Top. Its shape is opposite to that of a Symmetrical Triangle. The pattern develops after a strong advance in a stock price and can last several weeks or even a few months.
A Megaphone Top is formed because the stock makes a series of higher highs and lower lows. The Megaphone Top usually consists of three ascending peaks and two descending troughs. The signal that the pattern is complete occurs when prices fall below the lower low.
Volume in the Megaphone Top usually peaks along with prices. It is usual to see trading volumes increase or remain high during the formation of this pattern. The eventual breakout and reversal can be difficult to identify at the time of its occurrence because volume does not appear unusual.
Underlying Trading Behavior
The creation of the pattern reflects a period of time when bulls and bears are battling to gain control of the stock. The pattern occurs after the bulls have been charging and driving the stock price appreciably higher. During the formation of the Megaphone Top, however, bears are exerting increasing influence on the stock and causing it to set a series of lower lows. The increasing volatility eventually creates a sense of uncertainty, leads to profit-taking, and deters some of the bulls from making any further commitments. The bears eventually triumph!
The US Stock Market Chart Patterns
3. Cycle Analysis indicates a Head and Shoulder Chart Pattern is forming on the daily short term chart below. The Left Shoulder formed in July 2014; next expect a price reversal back up as Head formation is next.
4. Cycle Analysis indicates a Megaphone Top Chart Pattern is also forming on the 33-year LONG term chart below
The US Stock Market Cycle has formed a LEFT shoulder in July 2014. Next the Head forms as the Grand Megaphone Chart Tops, the Head is followed by a Right Shoulder and the pattern completes as the neckline breaks on the Head and Shoulders chart formation.
The Grand Megaphone Cycle crash arrives in the year 2015 as the Neckline of the Head and Shoulders breaks and the greatest Bear Market crash that Devastates the World begins!
Unlike the previous recession that followed the collapse of 2008 (wave point 4 on the chart above), there is no way out of this one. The time to finalize preparations for what’s coming is now. It’s going to go from bad to worse to terrible and our World as we know it will change forever!
In conclusion, Cycle Analysis indicates before a Deflationary Cycle grips the US and the World Market, FIRST expect an Inflationary Gold spike to $2000 catching everyone off guard and leaving all but the resolute Gold and Silver Bulls behind! Again, first an Inflationary Spike that is later followed by a Deflationary US and World Market crash coming in 2015!
A $1300 Gold price is soon to be history as Gold Spikes into $2000 before year end as the third and final Gold cycle of 7-years in to 2020/21 and $10,000+ gets under way!