Prepare For The Coming Stock Market Crash

Sorry to bear negative news on the 239^th birthday of the United States of America, but there is a fast approaching economic collapse and stock market crash that will affect the entire world. We need to be prepared. Now.

I would not be surprised if the stock market crashes within the September / October 2015 time period, possibly before then. I believe the economic fundamentals are poor and getting worse, fast. The technical landscape is warning markets are in a precarious place.

Let’s discuss some of the key technical evidence for this coming crisis:

First, I want to show you a stock market pattern that is either finished or will be very soon. It is known in the technical analysis textbooks as a Megaphone Top pattern. I have dubbed it with the nickname “The Jaws of Death” because it is a pattern that warns that the economy and stock market are about to be devoured, to be shark attacked. This pattern lulls investors to sleep just before tribulation. That is because its final wave “e” leg seems like a perpetual Bull Market. But once that “e” wave’s price move reaches the upper sloping boundary line, watch out! Well, guess what, this is precisely where markets sit this July 4^th; wave “e” sits at the top boundary line. Wave “e” looks finished.

What I want to show you next is that this pattern appeared before the most devastating stock market crashes and subsequent economic collapses of the past century, before the 2008, 2001, 1987 and 1929 recessions/depression. Below are the Jaws of Death charted patterns for these collapses.

What is so concerning this time, is that the size of the current Jaws of Death pattern is huge, exponentially larger that these prior patterns. In fact, the prior two patterns are a fractal, a subparticle of the current Jaws of Death pattern. Just as crashes and economic collapses arrived immediately after the completion of these prior patterns, there will be another meltdown starting soon. Now may be the last time for wise investors to prepare.

In my book, The Coming Economic Ice Age, available at www.amazon.com , I present several ideas on what to do to be ready. But I wrote that book two years ago, giving readers two years to prepare, and unfortunately time is running out. I pointed toward the current time period as a strong possibility for the start of this collapse. I feel even stronger today about this time frame.

Another piece of technical analysis for you to consider:

Three weeks ago, the stock market generated an official Hindenburg Omen, with observations on two different days. Since that official signal, three more H.O. observations occurred. This means we now have a necessary precondition for a stock market crash on the clock for the next four months, taking us well into October 2015. This Omen has appeared before all of the stock market crashes, or panic events, of the past 30 years except one, except the mini-crash of July/August 2011.  Except for that one crash, no stock market crash (a decline greater than 15 percent) occurred over the past 30 years without the presence of a Hindenburg Omen. Another way of looking at it is, without an official confirmed Hindenburg Omen, we are pretty safe. On the other hand, if we have an official Hindenburg Omen, then a critical set of market conditions necessary for a stock market crash exists. As of June 11th, 2015, we have such a condition in the market, as we have a new official Hindenburg Omen.

All the biggies over the past 30 years with the exception of the July/August 2011 decline were preceded and identified by this signal.  It was on the clock just before the stock market crash of the autumn of 2008. It was present and accounted for a few weeks before the stock market crash of 1987, was there three trading days before the mini crash panic of October 1989, showed up at the start of the 1990 recession, warned about trouble a few weeks prior to the L.T.C.M and Asian crises of 1998, announced that all was not right with the world after Y2K, telling us early 2000 was going to see a precipitous decline. The Hindenburg Omen gave us a three month heads-up on 9/11 (2001), and told us we would see panic selling into an October 2002 low, warned in October 2007 that a multi-month 16 percent plunge was about to start, from the DJIA’s all-time high. And it was on the clock three months before the stock market crash of the autumn 2008 into spring 2009 that wiped out 47.3 percent of the stock market’s value.

There are other technical analysis indicators pointing toward imminent trouble, such as Bearish Divergences between stock prices and the NYSE Cumulative Advance/Decline Line, and the average difference between New 52 Week Highs and Lows to name a couple, but the two I presented above are most compelling in my view.

But this is a secular financial warning from technical analysis. I used these tools to warn my subscribers back in October 2006 that big trouble was coming, and warned them to set up a conservative portfolio that would survive the coming financial crisis. We gave a blueprint for such a portfolio, an educational model, back then that did exactly that, protected wealth from the collapse. We even predicted the 2008 stock market crash the week before it occurred in our newsletter for subscribers.

Now we sit in the same scenario as we did back then, however we do not have two years to prepare in my view. We might have two months +/-. This is my secular financial analysis perspective.

But what is fascinating and I want to share with you this July 4th,  2015 weekend is that there are two independent studies from a Biblical point of view, that consider prophetic signs and Biblical cycles that center around the Jewish calendar, God’s calendar, which is different than our Gregorian calendar. It holds clues that at the very least are fascinating, that tie into past major world events, and warn about coming major world events, that point to this same economic collapse around the same time as the above Jaws of Death and Hindenburg Omens point toward. I find these independent contemporaneous warnings utterly astonishing.

I would refer you to four books to study the Biblical warnings, which are independent of the technical analysis warnings I presented above. I would study the four books in this order (and by the way, I have no relationship with any of these authors):

1. The Mystery of the Shemitah, by Jonathan Cahn
2. Blood Moons: Decoding the Imminent Heavenly Signs, by Mark Blitz
3. Four Blood Moons, by John Hagee
4. The Harbinger, by Jonathan Cahn

Both Jonathan Cahn and Mark Blitz also have DVD’s that present the guts of their books. Honestly, I was blown away by these four books and their DVDs. Why? Because my technical analysis arrived at the exact same conclusion for our economy, completely independent of their work! I did not even know about these books until six months ago. It has been a wow moment for me personally.

********

When did Noah build the ark? Before it rained. We believe it is now time to make sure our arks are built and can float. We can help you at www.technicalindicatorindex.com with our daily and weekend market updates, or conservative portfolio model, and Platinum educational Trading program.  

If you want to track the technical picture for our economy, the stock market and Gold, we can offer you a free 30 day trial subscription to our market forecasting service at www.technicalindicatorindex.com  Simply click on the Free Trial button at the upper right of our website home page. We cover stock markets, economic events, and Gold daily and have Buy / Sell signals we track for stocks, Gold and precious metals. We also offer a Platinum Trading service. Email us at [email protected] for information on that program.

Do not be satisfied hearing what the market did; learn how to predict what the market is going to do. Join us at www.technicalindicatorindex.com as we study the language of the markets. Markets tell where they are headed. Technical Analysis is the science where we learn and apply the language of the markets. We are currently offering a FREE 30 Day Trial Subscription. Simply go to www.technicalindicatorindex.com and click on the Free Trial button at the upper right of the home page. If you would like to follow us as we analyze precious metals, mining stocks, and major stock market indices around the globe, We prepare daily and expanded weekend reports, and also offer mid-day market updates 2 to 3 times a week for our subscribers. We cover a host of indicators and patterns, and present charts for most major markets in our International and U.S. Market reports. 

Dr. McHugh’s book, “The Coming Economic Ice Age, Five Steps to Survive and Prosper,” is available at amazon.com at http://tinyurl.com/lypv47v

Robert McHugh Ph.D. is President and CEO of Main Line Investors, Inc., a registered investment advisor in the Commonwealth of Pennsylvania, and can be reached at www.technicalindicatorindex.com.  The statements, opinions, buy and sell signals, and analyses presented in this newsletter are provided as a general information and education service only.  Opinions, estimates, buy and sell signals, and probabilities expressed herein constitute the judgment of the author as of the date indicated and are subject to change without notice.  Nothing contained in this newsletter is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision.  Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment.  Neither Main Line Investors, Inc. nor Robert D. McHugh, Jr., Ph.D. Editor shall be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided. Copyright 2015, Main Line Investors, Inc. All Rights Reserved.