The Quest for the Bottom Begins

In keeping with Nisan 17 and the day of new beginnings, I received an encouraging dream this weekend, which I believe revealed what lies ahead.

In this dream, I was outside at night standing next to a large lake. The water was very dark, even black, so there was no way to see beneath the surface. There was something mysterious and treacherous about it, as if something dangerous was hiding down there. I sensed there were others around me and we were all feeling concerned and anxious.

Then the scene changed and all of the water was gone so I was able to see the whole bottom and even walk down into it to take a closer look. I saw various large metal structures scattered around that looked kind of like playground equipment. Some others were there helping me, but I never saw them. Some of the parts were separated from the structures, so we carried them to where they belonged and re-attached them, somewhat restoring the structures to their original design, but we were only trying to tidy things up and not too concerned with restoring them. I looked all around the bottom of the lake and saw other similar structures scattered around in different areas of the lake.

Then the scene changed and the lake was again filled with water. I was out on the water in a boat along with other people and I was pointing into the water telling them where these metal structures were so they could safely navigate around them. That was the end of the dream.

Interpretation:

I believe the dark lake represents what lies ahead in the stock market with a deep bottom coming soon that is hidden from our view. This dream confirms what we have been seeing, the markets are heading for a big bottom just ahead. It also provides reassurance that God is going to remove the mystery and anxiety about what is coming.

I believe the other people around me in the first scene represented other investors. We were all feeling concerned and anxious about this mysterious lake because of our inability to see what was below the surface.

I believe the second scene where the water was removed represents how God is going to supernaturally reveal what lies at the bottom of the market so we know what is going to happen before we venture out on the water. The various metal structures represent events we need to know about so we don’t run into them and damage our boats.

I believe the others who went down into the emptied lake with me, whom I could not see, were other Z3 members who were also seeing the same structures. In the same way that God helped us find the various points at the top, I believe He is going to help us find the bottom by giving insights to many of us. Our combined efforts to put the pieces back together were not because we cared about restoring the structures, but so we would know where everything was so there would be no surprises, no random pieces unaccounted for that might cause trouble.

In the third scene the lake was filled again, but there was no longer any cause for concern because God had already revealed where things were. I was able to point out where these structures were so we could safely pass through.

Reaching the Top

Finding the top has been a learning process for me and I believe others too. One thing I learned was to pay closer attention to what everyone else is seeing and hearing rather than just relying on my own insights. I found it encouraging that eventually just about everything we saw happened. So the more we can compare notes the better!

I am not convinced we have reached the top yet because Friday morning I saw 2,116, which I believe represents a new high for this year in the S&P (equates to about 18,197 Dow). Last Wednesday April 20 the S&P reached 2,110, so this would be just a little higher. I did not see any date, so I don’t know if we get there this week or perhaps after we drop down and bounce back. So hopefully the downward movement continues, but if not I am expecting to see the first drop soon. Either way, it is not too soon to start considering the bottom.

First View of the Bottom

Finding the bottom is even more important than finding the top because there is only one top, but many bottoms. In my recent post, Historical Patterns Reveal Eight Step Process for Market Crashes, I explained the pattern of big bounces during previous crashes, which occur during the second step when support levels are tested repeatedly, and again after the first and second bottoms. The bounces are consistently fast, lasting only one or two trading days, and very big, which means missing them by even one day would be very costly. On the other hand, taking profits precisely at the bottom and even taking long positions to capture the bounces would significantly increase profits.

In the past few weeks, I have seen glimpses of the bottom, but I believe God is going to reveal more. I have shared some of these same visions in previous posts, but since it fits with this dream I have provided updates here.

I believe the first drop after the top is what I saw in the graph shown below, which I also shared in my previous post, Traders Looking Forward to Life After W.

Later, I saw what I understood to be a zoomed in view of the lower part of this same graph with the number 16 off to the right side. I believe that means the Dow will drop below 17,000, but not all the way to 16,000. When I see the steep drop and the shape of the curve starting to level off (especially in the 4-hour chart because that smooths out the smaller bounces), my plan is to sell my inverse ETF’s and purchase FAS to make profits on the way back up.

I believe the bounce back up on the graph above will put the Dow back up into the 17,000’s again, but since I don’t know exactly how high it will go, I will again be relying on the shape of the curve. When it begins leveling off, I will sell FAS and repurchase inverse ETF’s. Please note this graph is a rough estimate showing the general direction, so there might be smaller bounces along the way not shown here.

The second major event I saw was a line dropping almost straight down with the number 15,200 right below the end of the line. I later learned this is right below the long-term support level of 15,500 and it is normal for the market to test support levels prior to a crash by dropping briefly below support then bouncing back up. My plan is to sell my inverse ETF’s again when the Dow reaches 15,200. Then I will purchase leveraged ETF’s like FAS to capture the big bounce. I don’t know exactly how high it will go, but capturing even part of the bounce will be far better than holding onto inverse ETF’s and watching all of my profits disappear.

The third graph I saw showed a line moving almost straight down, which might be the same one mentioned above, then a line moving almost straight up and going so high I was not able to see the top. Then a third line came down from the top, but not quite as steep as the other two. It was steeper than a 45 degree angle so perhaps 60 degrees. This line dropped down much lower than the other two and in the right axis next to it I saw the number 11. I believe the reason why it did not show 11,000 is because it is not actually going to make it that far, but will only briefly dip down below 12,000 before bouncing back up.

I believe this final drop captures the panic selling, which historically takes about 4 to 8 trading days to reach the first bottom, which might explain why this line was not quite as steep as the other two. My plan is to sell all of my inverse ETF’s when the Dow drops below 12,000 and then buy leveraged ETF’s like FAS for the big bounce. Historically, the bounce after the first bottom is huge and lasts only one or two trading days, so missing it would be costly. For example, in 2008 the market gained 24.3% in just two trading days.

Surely there is a lot more to learn about the bottom than these simple points, so this a just a starting point that can be taken to God for confirmation and clarification. I am not recommending anyone make investment decisions based on this information.

Author: James Bailey

James Bailey is a blogger, business owner, husband and father of two grown children. In 1982, he surrendered his life to the Lord Jesus Christ. In 2012, he founded Z3news.com to broadcast the message of salvation by reporting end time news before it happens.

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