Dow: 90 Year Timeline

The 90 year timeline for a major decline is still on track. Key events discussed on September 7, 2020 will drive a decline of 86% in the Dow over the next two years. Calculations show the Dow will hit a low of 4137.19 by October 2022.  In the background COVID cases will start to increase in October 2020 and peak by January 2021. This is very similar to what happened with the Spanish Flu in 1919.  The second wave of COVID will continue to unravel the economy and supply chains resulting in numerous bankruptcies.

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Dow: Distribution of Inventory

Replacing Exxon Mobil, Pfizer and Raytheon Technologies with Salesforce, Amgen, and Honeywell International will allow Exchange Insiders to extend the current rally an additional 6% as they maximize short sales during their distribution of inventory (stock) to the public.  The Dow is expected to reach 30,469 by September 28, 2020 and hit an upper trend line shown in the chart above.

Stock chart courtesy of StockCharts.com.

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Gold: Long Term Move

Long term calculations indicate gold is on track to continue moving significantly higher going into 2021.  It is expected to reach a peak of 4000 (+/- 2.5%) during the first quarter of 2021.

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As the price of gold continues to move upward, the Federal Reserve will realize that inflation has started moving exponentially higher and will not respond to their short-term actions.  This will force the Fed to raise interest rates to extremely high levels, resulting in a collapse of the bond market.

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Dow: Gap Filled

Between June 17, 2020 and June 26, 2020, the Dow moved from 26,119.61 to 25,015.55.  Today, Market Makers filled the gap that occurred between June 10, 2020 and June 11, 2020. This move aligns with the development of a rising wedge starting from a low of 20,735.02 on April 2, 2020. It also confirms the intent of Market Makers and Commercial Futures Traders to move the Dow down to 18481.

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Dow: Structured Decline

On June 17, 2020 Futures Traders initiated the development of a basic Descending Triangle structure in preparation for a sharp decline in the Dow.  Over the last five trading days calculations confirmed this structure has been designed to move the Dow down to 18481 by August 28, 2020. Volatility is expected to increase as the Dow moves lower over the next 45 trading days.

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Dow: Volatile Decline

It should be noted that during the mid-June 2020 decline a select group of “short” exchange index products were under heavy accumulation during June 11 – 12, 2020.  Historical data indicates that significant gaps, such as the one created on April 3 – 6, 2020 are expected to be filled.  This would place the Dow in an extremely volatile range of 21447.81 (+/- 5%).

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