As predicted, the market started  the big decline yesterday.Most commentators have been saying that  in the month of December  any big decline cannot start. In the past November is usually down till Thanksgiving and then the rally for December and January happens.

This year is different. We had a rally in November and it got extended till Dec 6  and even till Dec 8 so that insiders could distribute stocks to willing retail buyers.  For the last 12 days more and more have been buying into this fake rally in spite of reaching 18 Trillion debt.They will now be mercilessly butchered in December which probably will continue  throughout 2015.

 Japan continues to  devalue its currency and so does the Euro Zone. Russia is also in recession. Iran is in recession also and all countries which depend on oil revenues are heading towards recession. Countries which are going through bad times and are in a bad social mood  do not come to any useful agreement no matter how many sanctions we impose on them. The root cause of racial strife in this country is also lack of jobs for the masses. Fake numbers are being published practically every week with almost 23% of the population being unemployed and underemployed.

Even though DJI & SPX have been making new highs, NYA, Russell 2000 and Energy stocks  have not made new highs. This divergence will now come to an end and rest of the market will head lower making new lows below  October  lows .
 The decline happens in 5 legs  one down, two up, three down, fourth up and 5th down. Each of the legs has 5 steps also.

In our motifs  on Motifinvesting.com we will watch out for these legs and steps for you.
Maximum Decline will happen in Russell 2000 stocks and ETFs and also in energy stocks.
 Markets around the World  are going Down

European markets are all down

Markets in Asia are mostly Down

DJI

SPY

IWM

TNA

TZA Will continue the rally

GLD

SLV

GDX

NUGT

ERX   As predicted made a New Low

ERY

TLT  Going Higher --Lower interest rates

TMF

Yinn   Consolidating Markets in China also weak

YANG

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The markets are being moved up and down so that the insiders can distribute stocks to retail investors .
The markets are moving up on the lowest volume of the year and that is also the reason  why markets are taking so long to reverse direction.

Dollar made a new high this morning and Yen and Euro made new lows. ECB has no clue about how to stimulate the economy. Merely devaluing the currency does not work. Yen is now above 121 to the
Dollar.  Similarly Euro is making new lows . In two years  it will be  on par with the dollar.

Jobs created in the last 3 months are  low paying seasonal and will reverse after January 2015.

Energy sector continues to move lower after minor rallies. Saudi Arabia announced yesterday that they will cut prices for USA imports. Small  oil producers from Shale will start going out of business.

 Same is true of  Gold miners.Weakest sector remains to be Russell 2000 and Energy Stocks. (See Our Book) Chinese stocks are moving up because of continuing stimulus and opening of the Shanghai market to the whole world. Nearly one Million new accounts were opened in the last one week out of Hongkong alone.

DJI

SPY

IWM   Going Lower to New Lows

TNA  Going Lower to New Lows

TZA Going Higher

XLE  Going Lower to new Lows

ERX  Going Lower  To New Lows

ERY  Going Higher

DUST 

YINN  Chines large Caps are Going  Much Higher on high volume

FXI Chinese chart for 10 Years 

Chinese stocks have a lot of room to go up

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Yesterday, DJI made a new intraday high based on 3 Oil stocks but looking at MACD , it is still giving a SELL signal. Russell 2000 is still in SELL territory. Dj Transportation is also  giving a SELL signal and NASDAQ will follow soon. Energy related ETFs XLE and ERX still giving a SELL signal.

Gold and Silver ETFs are in Buy region.Copper is also going down.
Natural Gas  continues to go lower  and our Natural Gas Motif is now up  77% since Sept 15, 2014

https://trader.motifinvesting.com/motifs/natural-gas---bull-or-bear-lDcyq066#/overview



DJI

SPY

IWM

TNA

TZA

XLE

ERX

ERY

TLT

TMF

GLD

SLV

NUGT

We are introducing China related Motif based upon China 3X Bull ETF YINN  and 3X Bear ETF YANG.
These are based  on  ishares China 25 Index Fund   ETF   FXI. This is also based on our book " Make Money in Bull or Bear Markets"
We believe Chinese  and Indian markets will outperform the rest of the world in the next 10 and 20 years

YINN  gave a Buy signal  a week ago

YANG  Gave a SELL signal a week ago

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Dji and Russell 2000 gave SELL signal on Friday  by use of MACD Technical Analysis. Soon SPY and NASDAQ will follow.

Also Oil made a 4 year low and is headed even lower.
It is interesting to see the comparison between 2007 peak in August to October  and 2014 peak between August and end of November. You can see distribution being done by  insiders in 2007 near the peak in Oct. Same thing is happening now near the peak in November, 2014

DJI 2007 Decline started in Oct 2007 and lasted till March 2009. We expect similar kind of decline starting immediately. There will be rallies in between.

Distribution in Oct 2014

We have many  insiders which include  Market Makers, Specialists, Hedge Funds , Large Operators and Professional Money who are playing in the market with the cooperation of central banks. Their main job is to buy at the bottom and fill up their coffers. Then they distribute this stock at the peak to retail investors and speculators. Let us look at the few charts

The way to distribute stock is to move it Up &Down with GOOD news. They have been  making  new highs in DJI, SPX & Nasdaq to suck in those who shorted a few days ago or who were hesitating till today.

 Once they have distributed all shares near the top, they will take the market down again to fill  up their coffers again near the lows.  The best way to distribute stock is to use media to publish good news. The retail investors BUY because they are afraid of missing a rally. It is all because of greed.

 All stocks, Gold &  Silver are being manipulated so that suckers can buy and insiders can get out.  Exchange markets are manipulated by Governments around the world but eventually they fail.  Look at what is happening to NIKKEI.

The market is like a large  tanker. It takes time to change direction. Look at SPY . They have kept it near the top for 8 trading days. Folks, they are  distributing stocks to the willing lambs before they butcher them mercilessly.

Why should not they do it? They make billions and SEC lets them do it legally. The best way for us is to follow the insiders and sell when they sell & buy when they accumulate. The rally can end any day may be even today.

Dollar has been getting stronger and that is why Gold , Silver and Oil have been going down.This strong dollar will affect  earnings of International companies badly.

DJI 2007 Decline started in Oct 2007 and lasted till March 2009. We expect similar kind of decline starting immediately. There will be rallies in between.
DJI

SPY

IWM

TNA Giving a SELL signal

TZA  Giving A Buy Signal

U 

DGAZ  Going Up sharply  Our Motif for Natural Gas Going up Sharply 

GLD Gave a Sell signal on Friday but it can reverse it if it goes above 15 Day moving average

SLV Gave a SELL signal May reverse if it goes above 15 day moving average. SEE our book

GDX Gold Miners  ETF  Gave a SELL signal on Friday

NUGT  Gave A SELL signal on Friday

DUST  Gold Miners  3X Bearish ETF   It May reverse if it goes above 15 day moving average

XLE  Energy ETF Going Down as Predicted  Will Make New Lows

ERX  3X Bull ETF Going Down sharply as Predicted 5 Days ago

ERY  3X Bearish ETF Going Higher as Predicted 5 Days Ago

TLT Long Term Bonds Going UP As interest rates go lower

TMF  3 X long term Bullish Bond Going Up As Predicted

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