Dow: Daily Calculation Changes

History shows that a stock market collapse is expected to follow Blackstone’s next major effort to launch an IPO for Building Materials Europe BV in 2022.  It is also expected this IPO could be pulled back into 2021 in order to line up with interest rate hikes, and the Fed’s scaling back of central bank bond purchases.  The reason for a 2021 IPO is based on the following:
1. The Blackstone Group $4.133 billion IPO occurred on June 21, 2007 prior to a long market decline and collapse going into 2009.
2. Blackstone was involved in the Aramco IPO which was accelerated to start trading on December 11, 2019, just before the 2020 stock market collapse. Gary Quin (North Atlantic Acquisition Company) helped Blackstone with the Aramco IPO.

Other short term planning elements include:
1. On September 23, 2021 it was reported that Jerome Powell said the central bank could begin scaling back asset purchases as soon as November 2021 and complete the process by mid-2022.
2. Bank of England policymaker Michael Saunders made an announcement to get ready for “significantly earlier” interest rate rises due to inflation pressure.
3. Goldman Sachs is expecting a huge market melt-up in the coming weeks.
4. Distributions continue, as it appears central bankers, investment bankers and investment management firms are coordinating a final move similar to what occurred between August 13, 1929 and September 3, 1929.
5. Engrbytrade™ daily Dow calculations indicate a shift has occurred that would support a move similar to that of March 4, 2021 to April 12, 2021. This move would allow the Dow to hit 38,000 in a very short period of time and align with the original Engrbytrade™ perspective.

Update note:
It looks like Blackstone found a way to leverage $1.2 billion before markets reach their peak.
https://www.reuters.com/article/marketsNews/idUSL4N2RG3H0?il=0

All that is need now is for the Fed to stop buy bonds and the Bank of England to start raising interest rates.

Disclaimer

Dow: Distributions Continue

On June 5, 2020 a long-term process was started to distribute large quantities of stock from hedge funds, banks, brokerage firms and Market Maker trading accounts to retail investors, pension funds, etc. Within the Dow 30 group, every stock has had significant distributions, as described by Richard Ney, during periods when prices moved sharply higher.  As the economy continues to collapse, many of the large block sellers on Wall Street will be out of the market and retail investors will watch the value of their investment accounts dwindle while stock markets decline.  The main stream media will be used to bolster confidence in the markets while pension funds are forced to sell when prices drop and they cannot meet their obligations. This process is no different than what occurred prior to previous market declines, such as 1929, and 2008.

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Dow: 2008 vs 2021

Structural and intermarket futures trading data calculations continue to have similar results between the July 15, 2008 to September 22, 2008 Dow structure and the June 18, 2021 to September 28, 2021 Dow structure.  This, along with strategic positioning of major currencies discussed in the September 25, 2021 post indicates a significant decline in the Dow is expected during the next 13 trading days (+/- 1 trading day).   This decline will have a negative impact on various financial instruments and commodities.

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Dow: Breaking Down

Charts courtesy of StockCharts.com

To put the Dow’s position in perspective, it has dropped out of the rising wedge that was developed during 2021.  Based on short term algorithm calculations the Dow is expected to move back up to the lower trend line before starting a meaningful decline.  A leading indicator for the Dow is the Dow Jones Transportation Average.  A decline in the Transportation average did start early during 1998 and 2007 prior to the Dow falling. It appears a steady decline in the Transportation average has started with the Dow not far behind

Disclaimer

Dow: Decline Scenarios

Based on futures trading data calculations, exchange insiders are developing two distinct scenarios for a decline.

1. A Dow structure similar to the October – December decline in 2018.
2. A Dow structure similar to the August – October decline in 2008.

As of today, there is a 52% chance the upcoming decline will be similar to the August – October 2008 crash.  What is very clear is that the U.S. Dollar will be an important part of this decline. A significant shift from global currencies and stocks into the U.S. Dollar will take place.

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Dow: Year End Decline

Intermarket futures trading data calculations indicate plans are progressing for the Dow to peak after September 16, 2021 and start a decline during the last quarter of 2021.  This move is expected to be similar to October –December 2018 with the US Dollar moving higher during this period.  Upon completion of this decline, the Dow is expected to move on to higher levels following the engrbytrade perspective.

Disclaimer

Dow: Move to 38,000

On July 28, 2021 the Federal Reserve issued a policy directive to complete a 1993 to 2021 Dow structure.  The Dow is expected to move to 38,000 (+/- 1%) in August 2021.  Following this move, the Federal Reserve should make a decision to raise margin rates during their Economic Policy Symposium in Jackson Hole, Wyoming on August 26-28, 2021. Retail traders will be fully invested as institutional traders complete their liquidation of equities.  A significant decline is planned for the last quarter of 2021.

Disclaimer

Dow: 1913 to 1929 Model

Structural research indicates the Federal Reserve started developing a stock market model in 1913 that ultimately drove prices higher going into September 1929 before collapsing the markets.  Comparing data structures covering the last 28 years this same model has taken shape on a scale that is 100 times larger than the 1913 to 1929 model.  As of July 2, 2021 a closing price of 34,786 in the current model would be within 1% of a relative position of 344.7 in the Dow structure on July 25, 1929.  Assuming the Federal Reserve continues to support this model, the Dow would be expected to reach 38,120 (+/- 1%) by September 2021 before collapsing.  Research also indicates key areas of Dow Futures Trading data show a trend shift that would support a scenario for a final move to higher levels between July and September 2021.

 

Disclaimer

Dow: Modified Structure

Today, shortly after 8:00 a.m. (EST) when an announcement of a deal with the Senate infrastructure group was made, Dow algorithms were modified from a structural decline similar to that of March 2020 to a retracement structure found between November 27, 2007 and December 10, 2007.  A decline is expected with a move down in the futures market to 31,712 (+/- 1%) by August 4, 2021 (+/-1 trading day).

Disclaimer

Dow: Retracement Upward

On June 19, 2021 it was noted that based on algorithm adjustments the Dow would move down to 32,756 (+/- 1%) by Monday, June 21, 2021.  On June 20 at 11:00 p.m. the Dow hit a low of 32,903 and was within the applicable 1% range.  A retracement upward to 33,818 (+/- 1%)  is expected by Thursday, June 24, 2021 before starting a move to significantly lower levels.

Disclaimer