Market Crash: Giving Tempo to the TWIST.

For us, economists, holidays and festivals are a good way to coordinate the economic activities of those who do celebrate them or not. For example Xmas for Christians, Passover for the Jews, Ramadan for the Muslims or Kanya Daan for Hindus,
By: Shalom P. Hamou
 
Sept. 13, 2010 - PRLog -- In "Operation TWIST Again: Market Crash" I show the fundamental and technical reasons for a high probability for a Market Crash this week. Here I develop the rational for that timing.

http://www.suckerforum.info/forum/topic/the-yield-curve-twist-omen


Times and Dates:


Yearly cycle of the stock market:

As we see on September the stock market has, on average, the worst negative return.

Month Average DJIA gain since 1896: January +0.9%, February -0.3%, March +0.8%, April +1.2%, May 0%, June +0.2%, July +1.4%, August +1.3%, September -1.2%, October +0.2%, November +0.9%, December +1.4%.


Sept. 9th:

"911 is an Inside Job"


Labor Day:

September 6th, 2010.

Labor Day brought the summer of 1929 to its conventional end on September 2nd. The next day the New York Stock Exchange had near record volume of 4,438,910 shares - The market was strong with what the press called a good undertone. On this very day, September 3, 1929 - as if by common consent - the great bull-market of the 1920s came to an end. In the days that followed, stock prices see-sawed under increasing volume as professional market veterans sought to unload.


The Quadruple Witching Hour:

September Friday 17th from 4:00 PM EST to 5:00 PM EST is Quadruple Witching Hour, which is prone to high volatility.


Rosh Hashana and Yom Kippur (in Hebrew ראש שנ ויום כפור):

There is a say on Wall street: "Sell at Rosh Hashana, buy at Kippur." well bad luck: this year Rosh Hashana fall on September 9th, the day of that dismal 30 Years US Treasury Bonds auction and Yom Kippur fall on a Saturday immediately after the Quadruple Witching Hour. It will be difficult to buy on a Saturday, won't it?

This year Erev Yom Kippur, falls on Sept 17th, 2010 or 9th of Tishrei, 5771, 911!


Eid al-Fitr (Arabic: عيد الفطر 'Īdu l-Fiṭr‎):

The Eid (the sacrifice that marks the end of Ramadan) will fall (approximately) on September 11th - 13th.


Both Qu'ran and Torah forbid lending with interest.


Constitution Day:

On September 17th, 1787, the United States Constitution was signed by 39 of the 55 delegates attending the Constitutional Convention in Philadelphia and subsequently ratified by each of the original 13 states.

In 2004 Congress designated September 17th, as a day to memorialize the Constitution. This September 17th, will be the fifth time America sees a nation-wide effort to observe and remember its founding and the third time for the RLC of NE Florida with the designation of Constitution Day.


Conclusion:


You might not believe these urban legends but your opinion or mine are irrelevant to the stock market. What counts is what the average opinion believes the average opinion will be. This is what you want to discover:

In one of the greatest investment markets in the world, namely, New York, the influence of speculation (in the above sense) is enormous. Even outside the field of finance, Americans are apt to be unduly interested in discovering what average opinion believes average opinion to be; and this national weakness finds its nemesis in the stock market.

All these elements concur to the fact that the market crash will probably occur between Sept. 9th and Sept 17th.


The Market Crash: Be Prepared.
http://www.facebook.com/event.php?eid=132651053416423

http://www.youtube.com/watch?v=eJylrGomAIo



# # #

After the Crash:

On Sept. 22nd at 12:00 PM EST, as we will have exhausted all our other options, I will, on "Market Crash: be Prepared" display a series of videos presenting my alternative to the Deep Depression:


An ideology is, is a conceptual framework with the way people deal with reality. Everyone has one. You have to -- to exist, you need an ideology. The question is whether it is accurate or not. And what I'm saying to you is, yes, I found a flaw. I don't know how significant or permanent it is, but I've been very distressed by that fact. A flaw in the model that I perceived is the critical functioning structure that defines how the world works, so to speak. That's precisely the reason I was shocked, because I had been going for 40 years or more with very considerable evidence that it was working exceptionally well.

History teaches us that men and nations behave wisely
once they have exhausted all other alternatives
End
Source:Shalom P. Hamou
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Tags:Finance, Quantitative Easing, Bank, Federal Reserve System, Fed, Bernanke, Market Crash, Economic Crisis, Recession
Industry:Banking, Financial, Government
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