Last night the U.S. Government shut down… sort of. This charade of the two party system is designed to move power from one party to another. Since the Fed can print unlimited money, only the legal wrangling remains before the spigot opens again. Once this happens, the stock market might experience “euphoria” and push the Dow to 16,000. If this happens, I see it as the world’s attempt at love and it will then miserably fail.
Richard Russell, known as the Godfather of newsletter writers, sees the potential of a “megaphone formation” or the “broadening formation.”
He said, “This final wave of optimism is the market’s kiss of death, since this final rising wave takes stocks far above known values”. He looks for the Dow to collapse to 5,000. Incidentally, ”5” if the number of Grace.
In his interview: Question — How do you think we should prepare for these massive changes that you foresee?
Response: I’m not really sure, but my first response is that we must abolish greed and become spiritual. Currently, it seems to me that the emphasis is on profit, growth at any price, power, greed and wealth.”
He expects a drop like this would evoke a new monetary system.
I think Richard is on to something big!
(As a courtesy: He writes the Dow Theory Letter: https://ww2.dowtheoryletters.com/ServicesOnline.nsf/Subscription+Form?OpenForm)