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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Today’s Headline:
“JP Morgan Says Gold Has Entered New Bull Market, Headed to $1400.”
“For those wondering how to trade this, we unfortunately have no advice: because if one is buying puts on expectations of the Fed losing control, we have bad news: the market will simply be shut down and all capital flows will be halted indefinitely before true price discovery is allowed. As such those hoping to be paid when all central bank control is lost will be disappointed. It is also why none other than JPM warned last Thursday that the best option is not to bet on financial assets, either long or short, but to move into physical assets among which, JPMorgan listed, gold.”
My take on the market mentality right now is that with so much money sloshing around people believe there is no alternative liquid investment besides stocks given nearly everything else is negative yielding in real terms. Japan in particular is printing vast sums and with very little local positive yielding investments available this cash flows offshore with most ending up in US stock markets. When the yen rallies as we experienced last week it is the result of some of this cash returning home as stocks are sold, when the yen falls that money is flowing offshore again and stock markets are pushed up as a result (this is why JPY is an important indicator to watch, more so than oil). The same story applies to the EUR although to a lesser extent and also to CNY although it is less obvious with the currency intervention. The main defence we have against this reckless money creation is to buy gold and silver but here again we meet a battle ground. The Fed and the other major central banks do not want gold and silver investment siphoning money away from the economy which they are desperately trying to resuscitate. Their reputations are on the line and the banks can ill afford a loss of confidence in their financial assets or worse still their currencies. Equally as significant the West does not want see a wealth transfer go from West to East which is exactly what would happen if gold takes off and currencies lose value. Left alone stock markets would be much lower and gold and silver would be much higher but this is not a fight the central banks will give up willingly. There are limits to how much they can intervene however, when corporations start returning negative real yields… Read more »
Hi all,
My thoughts on the market from a technical perspective… It looks like we are getting close to the top of this current leg up. The S&P 500 should run up to about 2095 tomorrow 5/11 and then start the next leg down which should end at about S&P 2035. Following that is the blow off top run up from 2035 to about 2116. Blow off tops run up very quickly with large upward price movement. Typically the blow off and reversal happen in the morning and then will spend the rest of the day selling down. The day after the blow off top will be a big down day as indicated on James’ graph. Looking at the timing I’m not sure if we could complete the blow off top by this Friday. It would be my guess that the final run up to S&P 2116 and blow off top happens on Tuesday the 17th.
Blessings to all,
Roger
Thanks Roger! That scenario fits what Julz described, which was seeing three tops, like a crown, then the big drop. However, I am curious to know why you think the middle top will be lower than the final one. Is this based on Eliot wave analysis?
Hi James,
Yes, it is based on Elliott Wave analysis as well as a lot of market study on tops. I used to work for a private equity company as an investment analyst. A correction to my previous post… after the S&P hits 2095 (probably tomorrow) the next leg down should bottom at S&P 2045 before the final leg up to the blow off top. The following is the latest Elliott Wave chart by Peter Temple of World Cycle Institute.
http://worldcyclesinstitute.com/wp-content/uploads/2016/05/SP500Mayrev.jpg
Thanks Roger!
James I think it’s amazing that you saw 2116. Exactly as Peters video shows it. I think he is the best out there as he explains everything and makes it simple to understand. My only question is that on one of his previous videos he states this is an opportunity of a life time. Roger is he talking about this next decline or the one after this one? I’m trying to calculate his 62 and 38 % lines but can’t get the same points .
James, if we hit 2116, to refresh my memory, the reset is based on historical data and NOT a “word” from the Lord?
Is that correct?
Thanks,
T
Thanks for pointing that out. I was referring to the historical pattern, which might or might not be repeated. Based on the current top from April 20, we are on track to reach the first bottom in mid-June, which is 40 trading days later. If we make a new top next week, the first bottom would by pushed back into mid-July.
James,
One more note.. The entire pattern beginning last August is a large “Head and Shoulders” market top pattern (your big W). Sometimes individual stocks and markets can breakout to to the upside from a W pattern but this one doesn’t appear to be formed correctly for a breakout to the upside. What happens right before the blow off top is an initial big move down. This gets the shorts wrong sided then an even bigger and quicker move up. The shorts panic and sell then the longs jump in thinking the market is getting ready to break out. This adds rocket fuel to the up move but then it collapses like an explosion at the top. Everyone in the investment community knows what that means and can see the pattern. There is typically about a 62% retrace from the first big wave down on a blow off top. The top of the 62% retrace is the textbook 2nd short entry point and should be followed by another big leg down. Hope that helps.
Roger,
I’ve been analyzing the 2 top elliott wave scenario’s at this point- mostly illustrated in the work product of Temple and Prechter. Temple’s first pick is this is intermediate wave 2 up, then intermediate 3 down in a “wonder to behold.” Prechter’s is that we are in a 5th to a new high, his alternate is Temple’s view. Could you explain if and why you think from a technical point Temple is correct? Thanks
FYI I was a former subscriber to Precther. He has been calling a top was in for the last several years and only recently switched to a 5th wave up. ( I dropped my subscription after he changed to a 5th wave up call). I feel there was no insite to their calls and was only looking in the rear view mirror which was even then non profitable. If a trading site makes you money you stay with them. Im out
That is an amazing confirmation of the graph I saw with the steep rise followed by a larger steep drop that levels off then bounces back up recovering what I estimated to be 50% to 75% of the drop. At the time, I had never heard of a blow-out top or a 62% retrace. So the numbers are lining up. Now if we can just get the timing straightened out!
Hi Roger,
If tomorrow is another up day then are you suggesting that Friday and Monday will be drops to 2045 in two trading days before the surge up on Tuesday to 2116 based on the data graphs? I might be missing something here but the S& P would have to drop from 2095 ( a possible high tomorrow) to 2045 in two days then skyrocket on Tuesday to 2116?
I appreciate your thoughts on my thinking. I am not sure I am following you correctly on this….
Thanks Roger for your insight.
Z3 family: Pray for a Kairos Moment! A ‘kairos moment’ is God’s appointed time to act. A ‘kairos moment’ is a moment in time when the Holy Spirit draws near to do a special work in and through a person or group. The Holy Spirit creates and orchestrates ‘kairos moments.’ God impressed me to share this word at this time for the Z3 family. Below is an encouraging truth from J.D. Greear…. 5 CRUCIAL TRUTHS FOR FOLLOWING GOD IN “KAIROS” MOMENTS Posted by Pastor J.D. on October 23, 2012 This weekend we continued our All-In series by looking at the life of Abraham. Abraham’s life shows us 5 crucial truths about following God. 1. Following God means venturing into the unknown. At crucial moments in his life, Abraham had to trust God with a completely unknown future. God told Abraham to “go” without telling him where he was headed. He told Abraham that he would have a son without explaining how. Later on, God would ask Abraham to sacrifice this son without explaining why. John Calvin summarized God’s interaction with Abraham like this: “Just close your eyes and take my hand.” So many people I talk to are unwilling to do this. They want to know, “God, if I surrender all of this to you, what about . . .?” They want to make sure that God will not make them a missionary, or that they won’t have to break up with their boyfriend, or that they won’t have to be poor. But God says, “For now, close your eyes and take my hand.” If God is who He says He is, you have to be willing to trust him. If not, you’ll never know Him or experience what He has for you. 2. God’s calling to salvation and his… Read more »
Thanks, Charles.
I close my eyes and take your hand, Lord!
Thanks Charles. I always lookout for your insights. I like looking at the meaning of words that I haven’t heard before. I knew the Greek chronos for time but i hadn’t come across kairos. Its the right or opportune moment for decision or action…Gods appointed time to act.
Phanuel,
Todays’ close of 222.44….an 11’s sign?
Also- 2+2+2= 6 and 4+4 = 8 OR 6.8…..The number of man with new beginnings??
Psalm 62:6 and Psalm 16:8 “…..I shall NOT be shaken”.
When I see 222 it says to me triple, 44 says double. Is there a triple or double something?
https://biblenumbersforlife.com/
222 is Son of a Harlot according to the site above
44= BHO, 44th president ? 44= Murderers: Secret World
It could be. We shall see.
I just had a different thought. Many have dreamed of a tsunami hitting the U.S. Could tsunami be symbolic of stock market/finances being wiped out? But this is what just came to me. Just before a tsunami hits the water recedes way out, then comes quickly to shore. Is the rise of the market the sign of the water going out?
I am reminded of my tsunami dream. I was standing on a hill next to an angel overlooking a city. I had my right hand on the angel’s left arm. I think the angels left arm was bent at the elbow next to his side. I knew I would not escape. So First, I immediately made myself right with the Lord. Could his left arm be saying I have left it up to you. My right hand on his left arm. Could it mean, you have been given the right way to handle what is coming. My standing on the hill with the angel represents his showing me and helping me to rise above what is coming up.
The way I am handling this expected financial crash is to buy a few shares of FAZ and UVXY every couple of weeks as long as things hold together. I also don’t worry about losing it as I know the Lord will take care of my needs according to his riches in glory.
Hi Preachey,
The father escorts the bride on the right side with her right hand on his left arm. You are the bride of Christ and are being escorted into His presence to experience intimacy with Him!
That is wonderful.
Z3ers, as ugly as today was I was encouraged by the lack of volume on the move…check the volume today…low on both SP and DJ…especially the SP…the markets do not have full participation and we could see a excessive move up soon to hit all of the final numbers…we appear to be step 2 in JB’s ‘Historical Patterns Reveal Eight Step Process for Market Crashes’….a re read is very enlightening…as of yesterday we were 16 days from the last highest high and only 3% down so far…I think we are in Step Two but as I was reading this it I thought it interesting…I would suggest a careful read of this info…may we ALL be experiencing His true peace thru this process of watching Him do as He pleases!
If we hit a new high on this new move up the countdown to the bottom resets.
Another interesting thing to ponder for z3news.Continuing with primes, If you take the 999th prime number you get 7907. Which if you subtract it from 9-11 number 1 ( Twin Towers 2001) you come up with January 18, 1980. The day the price of gold reached $1000 for the first time.
Now you go back from 9-11 number 2 ( Bengazi 2012) you come up with this date you get January 17-18, 1991. What happend on both those days?
January 17, 1991 Gulf War: Operation Desert Storm began early in the morning. Iraq fires 8 Scud missiles into Israel in an unsuccessful bid to provoke Israeli retaliation.
January 18, 1991 “US acknowledges CIA and US Army paid Noriega $320,000 over his career”
Notice any connection?
Now if you go back from these dates in 1991 you get this event. May 25, 1969 Sudanese government is overthrown in a military coup.
If you go back from this date you get an event involving The USA sezing control of Haiti financial system.
I have noticed every 7907 days from these dates, it seems America is involved in some scandal over throwing a nation, or US government involved in some mess.
Just another mathematical thought to ponder.
Looks like markets gearing up for a try at new All-Time-Highs this week, or next. Don’t waste your money on options, most people lose on these. Seems it will take some cataclysmic event to kill this Bull.