“What happens today has happened before and will happen again.” Livermore

“Rather than love, money, or fame, give me the truth.” Henry David Thoreau

“Excesses in one direction will lead to an opposite excess in the other direction.”Robert Farrell

================

Answering The $Billion Question

The Opportunity of a Lifetime

Tipping Point for the Ages

Sudden Psychology Shift Signals Grave Danger/Spectacular Opportunity

===================

Tracking Account Valuation January 4, 2022 – 1,206,085 (First day of Bear Market)

Tracking Account Valuation September 21, 2023- 3,265,217

Intermediate-Term: ~ Downtrend

L.O.L.R. Trend: ~ Downtrend

Open Positions: 21% SPXU, 17% SQQQ, 39% TZA, 14% VXX, 7% Cash

Stops: SPXU 9.47, SQQQ 15.77, TZA 19.47, VXX 20.47

===================

4:00:

Daily     LOLR    STS

Down    Down  Down

3/4        2/5       2/5

Breadth: 143/-359

NYMO: -17 Rising Intraday

NAMO: -21 Rising Intraday

NYSI/NASI Are Falling

==================

Our job as traders is simple, but it is profound. We “simply” need to align our trading portfolio with the market’s TREND. If we do that correctly, our work is done, and the market will do the rest.

Jesse Livermore made over $100 Million ($1.2 Billion in 2023 dollars) in the 1929-1932 Bear Market, aligning with that Primary Trend and “sitting tight.” He often wrote:

“It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.” Additionally, he wrote,

“It was never my thinking that made the big money for me. It was my sitting.”

Today, we focus on the trend before us and explain its crucial significance.

The last half of 2020 through 2021 produced the most incredible descent into madness of our lifetimes. That period’s unbridled, raw speculation exceeded even that of the “roaring 20s” preceding the 1929 crash and the Great Depression.

We highly recommend a read or reread of our January 2, 2023- Bear Market Will Bottom Only When We Reach The OPPOSITE of The Speculative Madness Of 2020-2021 to appreciate how manic and utterly insane markets had become in the eighteen months that preceded the Primary Bear Market of 2022-2024.

When the Primary Bear Market was initiated in early 2022, most traders eventually identified it as such, though some remained skeptical.

The real peril emerged in 2023, with markets cresting at the peak of Wave Two. This phase in every bear market, termed the “return to normal” by Dr. Jean Paul Rodrigue, presents the highest risk for participants.

In 2009, Dr. Jean Paul Rodrigue delineated the repetitive nature of the Boom-Bust cycle. Notably, July 2023 aligned perfectly with a critical phase of this cycle, where the prevailing sentiment was that markets had normalized after the 2022 Bear Market or that the bull run since 2009 was still in play.

Fourteen years ago, in 2009, Dr. Jean Paul Rodrigue described the recurring Boom-Bust cycle via the following diagram:

Notice especially the part of the entire cycle that is circled in blue.

The doctor could not have known in 2009 how perfectly he described the 2020-2024 period, especially the portion circled in blue, which is JULY 2023 in this case!

July 2023 was the part of this Bear Market cycle where the “conventional wisdom” became

• “Markets have, after a Bear Market in 2022, now “returned to normal,” or

• “We are still in the ongoing Bull Market that began in 2009.”

Why is this stage the most dangerous of all? Because:

• This is where markets have “taught” traders that it always comes back so that they will ride out any pullbacks.

• Traders abandon all caution now and become aggressively “risk-on.”

• This is where the decline accelerates.

This environment paves the way for disaster for the majority and immense success for a select few.

=====================================

Driving Forces of the Wave Three Decline: In upcoming reports, we’ll delve into factors like:

• The unprecedented 18-month and counting inverted yield curve

• Rapid decrease in M2

• Escalating 30-year mortgage rates affecting housing affordability

• Surplus in commercial real estate due to decentralized companies

• The longest-ever LEI decline spanning 16 months and counting

• Manufacturing PMI has contracted for nine consecutive months, marking a historic downturn

• The shift of high-risk money to safer assets like bonds, gold, and utilities.

More critically, we’ll use a lifetime of research and experience to guide you through the emerging TREND as we navigate these volatile times.

===============================

We’ll examine and discuss the overnight stock futures activity at 9:15 on Monday morning.

SPECIAL ONE-TIME ONLY OFFERING: One Full Month for just $1! Cancel anytime and still get the entire month with no further charges. Weekly Article “Return To Normal” Psychology Elevates Risk Geometrically here: https://sevensentinels.com/register/limited-time-trial/