If the economy continues declining into late October, there may be two landslides in the making: the stock market and the presidential election.
"First let me explain the basis for why the following may happen. The model analyzes market stress such as a selloff that was somehow averted. When such price action is averted, it is only done so temporarily. It does not eliminate the stress. And the more such events happen the greater the stress built into the system. For example, if you study the flash crash of 2010 or the July 2011 selloff, prior to that a number of opportunities for markets to correct were averted. For whatever reasons, the downside price action needed to “cleanse the system” was not allowed. The end result is the stress became too great and the downside movement was very explosive. (emphasis added by CHS)
The best example I can share with you is the detailed analog of the current market and that of 2011 over roughly the same time period. As a reminder there is more than just candlestick patterns but rather levels where price hits within the model. Those are levels used to identify such stress as referenced above."
Resistance, Revolution, Liberation: A Model for Positive Change (print $25)
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We are like passengers on the Titanic ten minutes after its fatal encounter with the iceberg: though our financial system seems unsinkable, its reliance on debt and financialization has already doomed it.We cannot know when the Central State and financial system will destabilize, we only know they will destabilize. We cannot know which of the State’s fast-rising debts and obligations will be renounced; we only know they will be renounced in one fashion or another.
The process of the unsustainable collapsing and a new, more sustainable model emerging is called revolution, and it combines cultural, technological, financial and political elements in a dynamic flux.History is not fixed; it is in our hands. We cannot await a remote future transition to transform our lives. Revolution begins with our internal understanding and reaches fruition in our coherently directed daily actions in the lived-in world.