Monday, October 4, 2010

October month Crash Phobia is here!

October is a month often associated with Crashes and steep declines. This includes, the October 1929 Crash, October 1987 Crash, October 1997 Crash, October 1998, October 2008 Crash, etc.  It is no wonder that the general sentiment is extremely bearish for this month on various forums. 

Black_Monday_Dow_Jones

The Master Cycle, if correct predicts  only a Mini crash starting sometime in October and lasting into November Lows, but will it be correct?


Here is what was said in the January 2010 Master Cycle forecast 2010 report (freely available upon request):


"Before we look at the MC 2010 forecast, it is good to remember a couple of points:
1. The MC can be correct and exact sometimes predicting exact swing Highs and
lows for many days, weeks and months at a time. In this time you might tend to
“fall in Love” with this cycle and be impressed with its accuracy, but Caveat
Emptor.
2. At other times, the MC can and will be flat out wrong. For some unknown
reason, the MC fades, inverts or becomes dormant. This could last for days,
weeks and even months. It is best to use it only when it is “active”. I define a
cycle to be active when it gets 3 “Hits”, ie when it gets 3 Highs and Lows correct.
When it is inactive, I simply don’t use it. I use my other Time & Cycle work to
tell me what is happening. It is best to be patient and wait until it becomes active
again and then trade on it as it tends to be very precise, as can be seen in the many
examples above.
3. The MC does not always follow the predicted Price magnitude, ie the actual
Price rally/decline could be a whole lot bigger/smaller than the forecasted Price
rally/decline as shown on the forecasted chart."


The Master Cycle is currently active and predicting a mini crash into a November Low,  but ONLY IF it remains active, ie only IF the coming series of Highs and Lows are exact into the very last High, before the Mini crash wave starts. These High and Lows will be updated in the Raj T&C Emails. Timing is going be very critical here, because if you go short or buy puts too soon, the Bull will fork you to death with his horns. 


One thing is for sure, if correct, it is going to be one of those great Money making opportunities for the year AND also one of those great BUYing opportunities of the year, similar to the 2/5/10 Lows which the MC predicted as well.

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