The hologram

Perhaps, we are living in a hologram and realities as we perceive it, are merely projections from wave interference patterns that resonates in frequencies, seemingly chaotic, but actually in perfect geometric order seen from higher degrees.

Perfect geometry, or sacred geometry seen in ancient mystical temples & pyramids of Giza, are everywhere. Where I thought would be the most random of all, human emotions, are in fact, playing out just as it is.

This is evidenced through the study of stock market cycles, where it represents the mass psychology of the human consciousness. Stock markets, looking chaotic and unpredictable, are not so. They, that is, human emotions, repeats in a cyclical order. They unfold in a spiral manner when viewed third dimensionally, basing on the golden mean ratio. And yes, they are predictable to the point, exact point.

So, that's what they have been saying for centuries, life is nothing but an illusion. An illusion by the observer. In quantum physics, Subatomic particles, are both waves & particles at the same time. It becomes a particle when it is being observed with light being hit on it. It remains as waves when there is no observer.

Reality seemed so real, because it is a shared reality, where our collective consciousness creates the reality, or universe, or everything that we are experiencing now. So in fact, the real we, are merely infinite waves of consciousness, vibrating and interacting in a void.

This means we are co creators of our collective experiences, our circumstances, our surroundings and even our planet. Everything that we see and feel are projections of our collective consciousness. In fact, all that it is, is a singular representation of us in physical forms. The earth falls sick because of us, this is an example. The earth and us are not separate entities. Or in a broader sense, the universe and us are not separate. We are them. They exist because we exist. Will they ever cease. No, because consciousoness is infinite. There is no beginning, there is no end. They do not cease, but merely change forms. That is, we do not cease, we merely change forms.

We are all parts and aspects of the divine, or the source, or the creation. Nothing religious here, it is just that I can't get a better word to represent the meaning.

Duality exists in order to manifest experience. To understand itself, that self must create another part of itself so as to relate and experience. There is no bad or good, because both must exist as part of the one. Knowing something is bad assumes we have known what is good. A bad person as defined by the current morality standards are playing out their calling and role. They may not know it, but they exist for a reason, for us to experience and know the other side. In higher terms, they are not being bad, they are just on the other side of the duality sphere.

Consciousness is the energy, DNA gives us the type of experience. We are carbon based beings, with 2 strands of DNA. As we become crystalline in the future, with the crystaline grids replacing our magnetic grids, we will move towards 1024 strands of DNA.

DNA is perhaps not just used for biological reasons, it represents us and who we are, in the entire cosmos.

The universe is musically constructed. Each octave holding notes that vibrates at a particular frequency. The harmonic frequency of light in the third dimension is 144, square of 12. Which WD Gann had mentioned pretty often. Gann, a successful trader, is also a high level mason, initiated through the masonic order.

The Masonic Order is seen by the public as a secret society, mainly because they are holding within them, important information that are being passed down since the age of Atlantis.

As separate as we may all seem to be in our forms, in reality, we are all ONE, as infinite waves harmonically creating things as we see it.

Science & Spirituality are now no longer seen as separate. Religion is no longer difficult to comprehend.

http://www.scribd.com/doc/14449660/The-Harmonic-Multidimensional-Universe

http://www.rense.com/general69/holoff.htm

The concept of Anatta

Half a year had lapsed since I last publicly shared my thoughts.

That's fast. Time flies. Time, in our third physical dimension, is linear, measurable, quantifiable.

With the passing of linear time as we have known and conditioned to, the neurons in my brain does seem to have acquired some new connections and pathways for the last 6 mths. 12 strands of DNA in a perfect being, yet we are only utilising 3% of 2 strands of DNA. Yeah, thats 2 STRANDS ONLY.

What's the other 10 strands doing ? Staying inactive, dormant ? Scientists have yet to discover what the other 10 strands are used for, though some speculated they contained the important genetic codes of human race, the workings of the subconscious mind and the "all-knowing" enlightened awareness of cosmic consciousness.

Oops, why am I in this...

Ok, anatta.

Anatta is derived from the concept of "no-self". When I first read this doctrine probably a year ago, I was quite confused. I love to probe, doubt and question till I think I finally got a satisfactory answer that mades real true sense. Doubting is always the essential prelude to steadfast and unwavering faith. It is not a lack of trust or faith, I doubt because I seek to believe strongly. Life is perception of realities and relativities.

Light comes from knowing there is dark
Love comes from understanding the illusion of hate, an ego-defense mechanism
The crave of peace comes through the sorrowful turbulences of war
And faith, is because we had once doubted strongly
Unwavering because we can finally see the real truth behind words and texts

The only question i always asked, does this meaning/doctrine/teachings create harmony/love/joy or discord/fear/helpless ?

Love is a simple word, but its meaning is "all-that-it-is". Understand it, apply it and you can know the answers. Pretty simple, but its seriously not easy.

Ok, anatta.

I was confused with this doctrine because how can a person disregard his self, cuts off his emotions and yet be able to spiritually advance himself ?

We are in humanoid forms, and this physical energy form that we have, comes with emotions. If we were to lose the concept of self, how are we going to evolve where loving kindness is a primary emotion.

Until i realised, words and doctrines/teachings are very difficult to comprehend till we do a self-discovery through experience, active self realisations and knowing it deeper, right into the source of our being.

This no-self is referring to our ego-self. The part of us, which drives our emotions and basic thoughts, turning them into realities. The concept of anatta teaches realities are an illusion. Which I pondered for quite sometime.

It's this. Our ego self is a fear based defence mechanism that comes attached to every human form. Every experience that we encountered since birth lives into the ego's memory, as a form of future self defense. Thus, as we grow, our reactions, our perceptions of life, is based on the thought forms of our past. If we did not have a happy past/childhood, these wounds will slowly eat into our subconsciousness mind, and forms the basis of how we view our reality.

And thus, the meaning of "realities are an illusion". Because, our realities are indeed an illusion of our mind, through thinking our ego represents ourselves.

To free ourselves from the burdens of our past that has conditioned us to think of who we are, are indeed who we are, we need to consciously understand the source of that feeling/thinking that arises in everything.

By understanding our ego self is not the self, we prevent attaching the emotions that arises. We can be fully aware, intuitive, and yet not attached to the situation or get eaten into the emotions. This is also an important step to prevent negative karmic consequences from forming due to our ignorance.

On the contrary, the idea of no-self lifts up the veil of fear through seeing the real source of every condition, often lying deep within our subconscious mind, linking way back to our past. And realising all of us are one. We attracts what comes to us. The law of attraction. Through forms and our five senses, we see a difference in one another. But we are all one. Made of the same energy, having the same sets of emotions, all seeking the same thing. The different forms of others enables us to see a part of ourselves which we fail to see. Be consciously aware of others as they are also a part of yourself.

Whenever I get angry, or stressed, the first reaction is always championed and directed by my ego. Its tough to get the ego to stay calm and listen to your higher self. This has to be done consciously and it really means giving up your sense of self-importance. The concept of no-self comes in. Situations that arises are always the mirror to show us where we are still lacking in. Anger at someone are sometimes anger at ourselves for not being able to handle the situation properly. An example would be a superiority complex to mask an underlying inferiority persona. When we realise that the arrrghhh arrogant person that we so hate, has a sad and difficult past, we will prevent the negative energies from coming to us, and from us spreading to others. We see the difficulty in them and their struggles and instead of being angry, we feel loving kindness towards them. That's how forgiving comes naturally.

That's when we stopped the destructive cycle of lower energies from circulating.

The past is past. Its an illusion of reality.
The future is the illusion of now.
To dissolve illusions, the NOW has to seek a path of emptiness & void. This is almost impossible when we are living in modern lives. It can be done, but it requires strength, wisdom and willpower to de-attach from being embroiled into daily phenomena.

Buddhism teaches that there is no soul self. Till date, I am still questioning on this. If there is no soul self, how could we evolve into higher beings ? Hence, this is something which I do not quite agree with, or do not have the ability and wisdom to understand its true meaning yet.

The crossroad again

I've been thinking for the past few days.

It's the time again where I am standing at a crossroad, with options, different directions and a moment of silence.

It's the time again to make a decision. My experiences and growth over the past few years had shaped me into what I am today. And now, my future will depend on where I choose to go.

Passion. Risk. Challenging.
Status. Growing people. Stable.

What makes a person excel ? Passion ?

Do what I am good at, passionate about, but requires a stepping down from what I had achieved so far.
Do what I am comfortable in, and continue climbing from there.

Age is catching up. I do not have much time to step down, return to step one and do it all over again.
But I am passionate about it. I crave for it and I believe I will excel in it.

Choose.

Little Thoughts

For Him.

A life of joy and peace
Solitary and calm
A love that binds
The weakest of hearts

A dream of tomorrow
A vision of hope
In all of yesterdays
I found it in you

In ways I err
You never once wavered
Your trust in me
Your love in us

In times of challenges
I saw you
Like a veil cast away
The rainbow comes through

To you I belong
From that day forth
To you I will be
The woman you so hope to see

Happiness

Be Prim
Be Proper
And you will be prosperous

Straight in thoughts
Clear in mind
And you will find peace

The hand that let it go
The heart that finally let it go

That moment,
Anger left
Love returns
It envelopes, it surrounds
With joyous sensation
So light, it light up others

I love
The peace in my mind
The joy in my heart
The love in my soul
The smile that is genuine

I pray
The peace within their minds
The joy found in their hearts
The love buried beneath
The smiles that stretched a mile

I hope
In difficult times, we have the courage to let go
In easy times, we have the faith and will to persevere

Care

Step out
Do not be afraid

Care
Do not be afraid

Love
Do not be afraid

Give
Do not be afraid

Remove the barrier
Do not be afraid

Be courageous
And if all fails,
You still have,
Self.

The week that marks history

Nestled wave 3's, coupled with infamous mercury retrograde, made worse with wild swings associated with heliocentric mercury in Sagittarius. And there you have it, the recipe for volatility and freefall.

On April 26, US indexes marked their high. At a intraday high of 11,258 on dow jones, it was also near to the fib 61.8% target. April 26 happens to be the date of 4th pass of the Saturn-Uranus opposition. The past 3 passes showed similarities where the market made a crest and fell thereafter. Will the final 5th pass follow the same route ? I bet so.

May 19 marks the day when Venus enters Cancer, setting off the Cardinal Climax. I mentioned in my earlier article on the Cardinal Climax and its implications. This summer is all about debt, social mood, the grand opposition of Saturn and Uranus, where Saturn represents the authority, the government. And the last week of May sees the 20 year opposition between Jupiter and Saturn coming into effect. This is the time to either make big money, or lose big. Place your bets wisely.

Fat finger error ? Debt ridden europe catalyst ? Correction long overdue ?

Coming back to the charts, technical charts showed damage, it has the look and feel of P3 or Wave C. Whether or not, this is the start of the next bear leg, or merely a bull market correction, is yet to be known. Only time will tell. Target for stops should be at SPX 800-900, which should take a couple of weeks to complete. Last night's action showed a symmetrical triangle, which is a wave 4. This means we may still have a downleg to complete wave 5 before we actually see any meaningful rebound.

In all these rush and gush, jpy is growing strongly against the euro. Is Japan ending their 20 year bear market and starting the next big bull ? My gut instincts tell me so, the currencies market are telling us so. While the west struggle with their debt problems, the east is consolidating and slowly emerging as the next leader. This shift of power, the theme of this crisis.

The Angel & Demon

The demon in me
Takes delight in myself
In a world of black and white
With recurring spasms of anger and hurt

Like a volcano full of ash and soot
Never clear, always steer
An infectious disease
It harms, it torments

The angel in me
Delighted by the smiles of others
In a world of roses and rainbow
Basking in lasting joy of love and patience

In a mind calm and unpenetrating
Taking joy in my dreams
Feeling the heartbeat of every being
The child within their soul

A land of righteousness
A paradise of bliss
The haven of pandora
The pulse of the light

Right here, in the corner of my mind

Draft it, carve it, create it,
You have it.
Be it.
See it.
Light it.
Show it.

Power of your dream

What is your dream ?

This is a question everyone will be asked at least once in their entire life. When I was young, my parents asked me what I would want to be when I grow up. I looked at them and aspire to be what they want me to be. So my dream was to be a doctor.

In my teens, my teachers asked us to pen a composition on our dreams. I looked at my teacher and submitted my composition. I wanted to be a teacher. They gave me 60 marks for that. And since, I made up my mind not to be one.

As time passes by and as I stumbled, fell, picked myself up and moved, the image of my real dream becomes clearer. I no longer aspired to be a doctor, a teacher or any profession that most people would die for. I no longer desire to achieve million club status by xx age. No longer.

What do I want to be ? I asked life in return. What can I do so that when I lay my last breathe, I can smile and say goodbye, having led a life of fruitfulness. Fruitfulness then, depends on individual perceptions and motivations. There is no right or wrong. It is a choice, your choice. In the end, you are the witness to your chosen path.

My dream, is to leave behind a legacy that has the ability to create, to spread, to multiply in goodness, spreading the torch of love and smile for decades or centuries to come.

This is my aspiration, the dream for myself, children, descendants and my future. It is just that simple. Nothing fascinating, nothing wow-ed. It is merely living out my life's worth to excellence. And excellence to me, can only be measured by the amount of light that it has touched on others. A life expectancy of 80 years doesn't just end there. Your body erodes, but your soul lives on.

Someone told me before, "life is a piece of cake, enjoy it". Our personal entanglements and troubles all seemed so insignificant when we opened our hearts to others . Love gives, love returns.

What is your dream then ? Are you leaving out your dream for someone else, or because others have done so, or simply because you do not have one. Do you love the dreams that your dream brings you. Be true to your answer, you are your own judge. You are the witness to your chosen path. You have a choice.

Find your dream, the dream that makes people dream.

Soul food for thought

Written by Adrian Tan, author of The Teenage Textbook (1988), was the guest-of-honour at a recent NTU convocation ceremony. This was his speech to the graduating class of 2008.

I must say thank you to the faculty and staff of the Wee Kim Wee School of Communication and Information for inviting me to give your convocation address. It’s a wonderful honour and a privilege for me to speak here for ten minutes without fear of contradiction, defamation or retaliation.

I say this as a Singaporean and more so as a husband.My wife is a wonderful person and perfect in every way except one. She is the editor of a magazine. She corrects people for a living. She has honed her expert skills over a quarter of a century, mostly by practising at home during conversations between her and me.On the other hand, I am a litigator. Essentially, I spend my day telling people how wrong they are. I make my living being disagreeable.Nevertheless, there is perfect harmony in our matrimonial home. That is because when an editor and a litigator have an argument, the one who triumphs is always the wife.And so I want to start by giving one piece of advice to the men: when you’ve already won her heart, you don’t need to win every argument.

Marriage is considered one milestone of life. Some of you may already be married. Some of you may never be married. Some of you will be married. Some of you will enjoy the experience so much, you will be married many, many times. Good for you.

The next big milestone in your life is today: your graduation. The end of education. You’re done learning.You’ve probably been told the big lie that “Learning is a lifelong process” and that therefore you will continue studying and taking masters’ degrees and doctorates and professorships and so on. You know the sort of people who tell you that? Teachers. Don’t you think there is some measure of conflict of interest? They are in the business of learning, after all. Where would they be without you? They need you to be repeat customers.

The good news is that they’re wrong.The bad news is that you don’t need further education because your entire life is over. It is gone. That may come as a shock to some of you. You’re in your teens or early twenties. People may tell you that you will live to be 70, 80, 90 years old.

That is your life expectancy.I love that term: life expectancy. We all understand the term to mean the average life span of a group of people. But I’m here to talk about a bigger idea, which is what you expect from your life.You may be very happy to know that Singapore is currently ranked as the country with the third highest life expectancy. We are behind Andorra and Japan, and tied with San Marino. It seems quite clear why people in those countries, and ours, live so long. We share one thing in common: our football teams are all hopeless. There’s very little danger of any of our citizens having their pulses raised by watching us play in the World Cup. Spectators are more likely to be lulled into a gentle and restful nap.

Singaporeans have a life expectancy of 81.8 years. Singapore men live to an average of 79.21 years, while Singapore women live more than five years longer, probably to take into account the additional time they need to spend in the bathroom.So here you are, in your twenties, thinking that you’ll have another 40 years to go. Four decades in which to live long and prosper.Bad news. Read the papers. There are people dropping dead when they’re 50, 40, 30 years old. Or quite possibly just after finishing their convocation. They would be very disappointed that they didn’t meet their life expectancy.I’m here to tell you this.

Forget about your life expectancy.After all, it’s calculated based on an average. And you never, ever want to expect being average.Revisit those expectations. You might be looking forward to working, falling in love, marrying, raising a family. You are told that, as graduates, you should expect to find a job paying so much, where your hours are so much, where your responsibilities are so much.That is what is expected of you. And if you live up to it, it will be an awful waste.If you expect that, you will be limiting yourself. You will be living your life according to boundaries set by average people.

I have nothing against average people. But no one should aspire to be them. And you don’t need years of education by the best minds in Singapore to prepare you to be average.What you should prepare for is mess. Life’s a mess. You are not entitled to expect anything from it. Life is not fair. Everything does not balance out in the end. Life happens, and you have no control over it. Good and bad things happen to you day by day, hour by hour, moment by moment. Your degree is a poor armour against fate.Don’t expect anything.

Erase all life expectancies. Just live. Your life is over as of today.

At this point in time, you have grown as tall as you will ever be, you are physically the fittest you will ever be in your entire life and you are probably looking the best that you will ever look. This is as good as it gets. It is all downhill from here. Or up. No one knows.What does this mean for you? It is good that your life is over.Since your life is over, you are free. Let me tell you the many wonderful things that you can do when you are free.The most important is this: do not work.Work is anything that you are compelled to do. By its very nature, it is undesirable.Work kills. The Japanese have a term “Karoshi”, which means death from overwork. That’s the most dramatic form of how work can kill. But it can also kill you in more subtle ways. If you work, then day by day, bit by bit, your soul is chipped away, disintegrating until there’s nothing left. A rock has been ground into sand and dust.There’s a common misconception that work is necessary. You will meet people working at miserable jobs. They tell you they are “making a living”. No, they’re not. They’re dying, frittering away their fast-extinguishing lives doing things which are, at best, meaningless and, at worst, harmful.People will tell you that work ennobles you, that work lends you a certain dignity. Work makes you free. The slogan “Arbeit macht frei” was placed at the entrances to a number of Nazi concentration camps. Utter nonsense.Do not waste the vast majority of your life doing something you hate so that you can spend the small remainder sliver of your life in modest comfort. You may never reach that end anyway.Resist the temptation to get a job. Instead, play. Find something you enjoy doing. Do it. Over and over again. You will become good at it for two reasons: you like it, and you do it often. Soon, that will have value in itself.I like arguing, and I love language. So, I became a litigator. I enjoy it and I would do it for free. If I didn’t do that, I would’ve been in some other type of work that still involved writing fiction – probably a sports journalist.So what should you do? You will find your own niche. I don’t imagine you will need to look very hard. By this time in your life, you will have a very good idea of what you will want to do. In fact, I’ll go further and say the ideal situation would be that you will not be able to stop yourself pursuing your passions. By this time you should know what your obsessions are. If you enjoy showing off your knowledge and feeling superior, you might become a teacher.Find that pursuit that will energise you, consume you, become an obsession. Each day, you must rise with a restless enthusiasm. If you don’t, you are working.Most of you will end up in activities which involve communication.

To those of you I have a second message: be wary of the truth. I’m not asking you to speak it, or write it, for there are times when it is dangerous or impossible to do those things. The truth has a great capacity to offend and injure, and you will find that the closer you are to someone, the more care you must take to disguise or even conceal the truth. Often, there is great virtue in being evasive, or equivocating. There is also great skill. Any child can blurt out the truth, without thought to the consequences. It takes great maturity to appreciate the value of silence.In order to be wary of the truth, you must first know it. That requires great frankness to yourself. Never fool the person in the mirror.

I have told you that your life is over, that you should not work, and that you should avoid telling the truth. I now say this to you: be hated.It’s not as easy as it sounds. Do you know anyone who hates you? Yet every great figure who has contributed to the human race has been hated, not just by one person, but often by a great many. That hatred is so strong it has caused those great figures to be shunned, abused, murdered and in one famous instance, nailed to a cross.

One does not have to be evil to be hated. In fact, it’s often the case that one is hated precisely because one is trying to do right by one’s own convictions. It is far too easy to be liked, one merely has to be accommodating and hold no strong convictions. Then one will gravitate towards the centre and settle into the average. That cannot be your role. There are a great many bad people in the world, and if you are not offending them, you must be bad yourself. Popularity is a sure sign that you are doing something wrong.

The other side of the coin is this: fall in love.I didn’t say “be loved”. That requires too much compromise. If one changes one’s looks, personality and values, one can be loved by anyone.Rather, I exhort you to love another human being. It may seem odd for me to tell you this. You may expect it to happen naturally, without deliberation. That is false. Modern society is anti-love. We’ve taken a microscope to everyone to bring out their flaws and shortcomings. It far easier to find a reason not to love someone, than otherwise. Rejection requires only one reason. Love requires complete acceptance. It is hard work – the only kind of work that I find palatable.Loving someone has great benefits. There is admiration, learning, attraction and something which, for the want of a better word, we call happiness. In loving someone, we become inspired to better ourselves in every way. We learn the truth worthlessness of material things. We celebrate being human. Loving is good for the soul.Loving someone is therefore very important, and it is also important to choose the right person. Despite popular culture, love doesn’t happen by chance, at first sight, across a crowded dance floor. It grows slowly, sinking roots first before branching and blossoming. It is not a silly weed, but a mighty tree that weathers every storm.You will find, that when you have someone to love, that the face is less important than the brain, and the body is less important than the heart.You will also find that it is no great tragedy if your love is not reciprocated. You are not doing it to be loved back. Its value is to inspire you.Finally, you will find that there is no half-measure when it comes to loving someone. You either don’t, or you do with every cell in your body, completely and utterly, without reservation or apology. It consumes you, and you are reborn, al

Still the same

I am not into this bullish hype.

Still keeping my views that this rally is not the start of a new bull.

2 reasons. And that's the only 2.

1. Wave structure since Mar 09 is corrective, a double zigzag 5-3-5 x 5-3-5 or abc x abc. A bull market is impulsive and waves will be 1,2,3,4,5.

2. Vix is forming a bullish positive divergence on weekly charts which portends higher volatility ahead.

As per my previous post, I foresee a bullish breakout on Gold and it happened. I am long term bullish on commodities and precious metals.

If Fed is ready to increase interest rates to prevent inflationary pressures and prevent a USD collapse, Gold will drop initially, but will still maintain well above its long term trend line and continue to go higher even as Fed increase rates. The Fed will soon find themselves unable to contain high inflation. At one point, the continual increase in interest rates to prevent inflation will soon turn out to be creating contraction and disaster to the economy. That's when the 1929 depression style economy will set in. When that happens, look for Gold to peak as the traders prepare for a turn to lower interest rates again.

Bank holiday coming soon

Is a bank holiday coming soon ? Circulating around the internet are news that a FDR bank holiday is approaching.

Abstract from marketwatch.com

In its current issue, HSL reports rumors that "Some U.S. embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of U.S. cash to purchase currencies from those governments, quietly. But not pound sterling. Inside the State Dept., there is a sense of sadness and foreboding that 'something' is about to happen ... within 180 days, but could be 120-150 days."

HSL's suspicion: "Another FDR-style 'bank holiday' of indefinite length, perhaps soon, to let the insiders sort out the bank mess, which (despite their rosy propaganda campaign) is getting more out of their control every day. Insiders want to impose new bank rules. Widespread nationalization could result, already underway. It could also lead to a formal U.S. dollar devaluation, as FDR did by revaluing gold (and then confiscating it)."

The Amero - is it real ?

The alleged replacement of the US dollar, Canadian loonie and Mexican Peso with Amero raises eyebrows. Just like Euro which is the common currency of the European Union, the Amero has been rumoured to be the currency for North American Union, consisting of United States, Mexico and Canada. This is supposedly the agenda to be one step closer to UN dreams of a one world government.

The amero coins and bills has already been printed, though its announced to be more of a collective nature rather than real currency.
Try googling up amero, and you'll find plenty of news on it.

I've been thinking about the US debt. Their debt is probably going parabolic, the government is not a bunch of stupid people. They know what they are doing. The huge and perhaps, unrecoverable debt makes the dollar worthless. If, assuming the rumours are real, and that the powers will be creating a new currency to replace the greenback, then it makes sense to chalk up a mountain of debt. Since you're not going to repay your debts in dollar anyway. So you spend and spend, buy and buy...

I've no idea if its true. Time will tell.

Asia (China ?) has been agressively buying Gold & Silver. Both these precious metals have finally broken out and up of its diagonal triangle, so this means the short term direction is up, targetting a Gold target of above $1000. As for Silver, its still below its all time high of $21, lets hope it can reach that level soon.

As stated in my previous posts, will Gold & Silver follow the deflationary trend in equities ? My guess is no at this point of time, because I suspect the upcoming tsunami will be triggered off by public's confidence in our very existing monetary and fiat currency system. The currency storm.

The bear may have begun

SPX may have topped at 1039, close to the pivot 1041.

It is now trading at 1000, lets watch if it can maintain support at 990 level. If it doesnt and the wave looks strong and impulsive, this increases the possibility that the bear has resumed.

VIX on the other hand, has maintained a bullish momentum and broken out of its descending wedge. This is very bullish, especially with a positive divergence and RSI. Of important interest, is that the divergence has been forming since October. Its been building a 1 year base. And because of this, I have been mainting a bearish outlook on the markets and do not believe in the recovery story painted by the media.

As noted by Atilla in his blog, some giant options player has betted on a bloody November. Call options at VIX 40 is being bought. This means some very very huge player is betting a volatile market then.

China is now back in a bear market status. The other markets should start to peak and roll over.

Little thoughts on Swine Flu

Somehow, my brain cells was in hibernation mode this afternoon. So to prevent it from going into full hibernating mode, I did some readings on H1N1 Swine Flu. Partly because I was going to US soon and more importantly, there was a warning from health authorities that the swine flu epidemic may run its peak in the fall season and will affect 30% of the US population. That's a awful lot.

So here it is again. I am skeptical of almost everything even though on the surface, I may appear to agree. Including the wild conspiracy theories of the New World Order etc etc. But sometimes, I do read a bit to gain an insight to both sides of the equation. Truth comes from skeptical questioning and real understanding.

I was particularly concerned when I saw Baxter had patented the H1N1 vaccine in 2007. That was 2 years before this virus infected the human population. The media reported that the source of virus came from pigs. And so, how in the world can this vaccine be created and patented then ? Unless, it was either deliberate or by mistake, that the virus was already experimented and created in the laboratories and somehow got to the outside world. And worse still, this vaccine may be contaminated with the deadly H5N1 avian flu virus. Inject with caution is the word. Gosh, sometimes I really hate myself for being too inquiring.

Animals. When can we ever learn to love them with respect and care. They are always the scapegoat for human errors because they cannot fend and fight for themselves.

An abstract from "The Liberty Voice".

"Baxter has been chosen by the WHO to head up efforts to produce a vaccine for the Mexican swine flu that is spreading throughout the U.S. and Europe.

The decision was made despite further revelations last month that vaccines contaminated with deadly live H5N1 avian flu virus were recently distributed to 18 countries by a lab at an Austrian branch of Baxter.

Initially, the company attempted to stonewall questions by invoking “trade secrets” and refused to reveal how the vaccines were contaminated with H5N1. After increased pressure they then claimed that pure H5N1 batches were sent by accident.

However, the probability of mixing a live virus biological weapon with vaccine material by accident is virtually impossible."

Read on. Copied from Case about bird flu

Off to the final race

Last night, SPX busted through 1018 easily, the activity surely resembles a wave 3. From my last post, I mentioned SPX need to exceed 1013 quickly else the momentum will be to the downside. It surely fulfilled this yesterday. So now with the structure clearer, we can narrow our probabilities. The H&S formation of SPX has been cancelled, but the triangle of Gold/Silver remains. Short term target is US$1085 for Gold if it breaks to the upside. However, it will best to stay neutral at the moment and not second guess the direction. Remember, a breakout from a symmetrical triangle can go either way.

SPX is now in the final upleg. There are 2 possibilities here.

1. Its in major wave 3 of C of C. We should expect a weak corrective wave 4 and a final rally to SPX 1041 to complete the entire rally from March lows. Major resistance remains at 1044. The great bear should resume thereafter.

2. Its in minute 3 of major 1 of C of C. This paints a more bullish target of Dow 10k and SPX1121, a 50% retracement before the bear resumes.

We will know by then if the market has topped. The reversal will be strong and violent, befitting of the status called "Great Bear".

Watch for negative divergences on the RSI/MACD of weekly charts as prices make a new high.

As prices makes new highs while volume is decreasing, distribution is also going on silently as institutions and big boys unload their holdings to retail investors. Be careful not to be the one to carry the last bag.

Deflation or Inflation

My last post talked about Pretcher's call for US$650 Gold bottom. He supports a deflationary view.

I do agree so far with his call on the equities market. Been pondering over and over again and I got to say I am still skeptical about his precious metal direction. For the past few days, both Gold and Silver had been consolidating in a diagonal triangle. The break, after ABCDE is completed, is either to the upside or downside in a big, fast way. On the other way, equities seemed to paint a Head & Shoulder picture and if 1013 is not surpassed quickly, the momentum should be to the downside. Price was up last night on SPX, but volume down. This is bearish.

At this juncture, most are on the consensus that the trend of both equities and commodities are in the same direction. USD is opposite. Hence, most expect them to be down at the same time, drawing similarities to the crash of 08, where fund managers and institutions liquidate their commodities holdings to raise cash.

What IF, and a big if, this time is different.

Looking at the long term chart of USD, its clear it has been in a secular bear market. Within a secular cycle, there will be cyclical bull markets. But overall, the long term trend is down. Focusing on the weekly charts, I saw a double top in USD. And there is a clear 5 wave impulsive structure down after the double top formed. If, USD has bottomed for wave 1, and is now retracing in a typical 50% or 61.8% of wave 1 to form wave 2, we would expect USD to crash in a nasty wave 3 after wave 2 is completed.

With a wave 2 rally in USD ongoing, equities should be on a decline at the moment. Commodities as well. Although the structure of correction defers. Equities forming a H&S (bearish) and commodities consolidating in a triangle (can be bullish or bearish depending on the direction of breakout). Which brings us to the next scenario. Most seem to think USD has truly bottomed at least for the next couple of years. What if this time, it turns out differently. Markets have a tendency to leave 80% of the people behind and wrong. So when most people agree on the same direction, its perhaps beneficial to try and step back and look at the other side.

Could both USD and equities crash at the same time ? Why not...

If the very existence of Fed itself and the monetary system comes into question, all hell will break loose. This might be the next catalyst for a crash. The world which we lived in now operates on a fiat currency system. There is no backing on Gold or any other precious metal. President Nixon removed the Gold Standard since 70s/80s. Hence, the value of our currency lies in our confidence of it. In the crash of 08, capital flew to treasuries and greenback as a flight to safety took hold. If Fed comes under scrutiny by the public and the nature of its existence is being questioned, I don't think people will still consider USD as the safehaven then. Where else will these capital flow to ?

Not in equities, not in USD nor any fiat currencies, so what else left ? Gold & Silver ?

Even if we are in a deflationary environment, it doesn't mean Gold and Silver should fall as well. If Fed manage to control inflationary pressures, gold and silver should continue to perform well if the cause of the next downfall lies in the confidence of our monetary system.

Here is Congressman Ron Paul's campaign on the auditing of Fed, HR 1207.

"I have been very pleased with the progress of my legislation, HR 1207, which calls for a complete audit of the Federal Reserve and removes many significant barriers towards transparency of our monetary system. This bill now has nearly 170 cosponsors, with support from both Republicans and Democrats. Senator Bernie Sanders has introduced a companion bill in the Senate S 604, which will hopefully begin to gain momentum as well. I am very encouraged to see so many of my colleagues in Congress stand with me for greater transparency in government.

Some have begun to push back against this bill, and I am very happy to address their concerns.

The main argument seems to be that Congressional oversight over the Fed is government interference in the free market. This argument shows a misunderstanding of what a free market really is. Fundamentally, you cannot defend the Federal Reserve and the free market at the same time. The Fed negates the very foundation of a free market by artificially manipulating the price and supply of money – the lifeblood of the economy. In a free market, interest rates, like the price of any other consumer good, are decentralized and set by the market. The only legitimate, Constitutional role of government in monetary policy is to protect the integrity of the monetary unit and defend against counterfeiters."

China Bubble Drop Updated

In my previous article on SSEC falling 5% signalling the change in trend, we may get the sell signal soon. They made the high on 4 Aug and have dropped 12.2% since then. Its now sitting above the 200ma, but below 50ma. Once 200ma breaks, the odds are high that the bear market rally Wave B is over and it will be the first to roll over.

Thereafter, the rest of the markets should start to roll over one by one.

Robert Pretcher issued a bulletin end of February advising his clients to close short positions as the market was in extreme bearish mode (3% bulls) and was tightly compressed. Shorts will be slaughtered if they are not out of the way of the ferocious bear rallies. Bear market rallies had been known to be fierce and fast. This had happened.

Pretcher once again, just released his latest bulletin, abeit a week earlier in order to prepare his clients for what lies ahead. He advised the unwinding of long positions as we await for the nasty Wave C/Wave 3. In his 10 page report, he mentioned the likely disintegration of GE during the next wave down. Besides GE, hundreds more who had remained resilient during Wave A/Wave 1 will be impacted and weakened this time round.

He mentioned precious metals as well, forecasting a US$650 bottom for Gold. USD should start to rally for the next 3 years. Gold/Silver will take a hit as USD rallies. But they will be the buy of a century after the bear market bottomed (2012-2016).

The USD bottom

The USD seems to have completed their correction and bottomed last Thursday/Friday. The rally off Friday's low looks strong. Will it continue and signify a change in trend ? Lets watch it closely over the next few weeks.

Both SPX and USD moved up on friday. For the past few months, both indexes had moved opposite of each other. So, which one is a headfake ? I tend to support a down-move in SPX for the next coming weeks/months. However, though I still believe we are peaking soon, I need to avoid the major pitfalls of a trader. That is, letting your emotions rule.

To be a successful trader, one must cast aside his bias on a specific direction. He must learn to look at both sides rationally and choose the path with the best probabilities till it is proven otherwise. Stops must be in place to prevent excessive losses if a trade goes against you. Failing to adhere to these, a trader will find himself losing control and letting his emotions rule over his head.

Back to the markets, the SPX has retraced 38% of the entire decline from 1576-666, stopping at 1018 last friday. While SPX and Dow both hit new highs, NASDAQ did not follow suit. A case of intermarket bearish divergence. In Asia, SSEC/HSI had retraced at least 50% or more. The minimum retracements for a B counter rally had been met. Will the markets continue higher into fall season ?

A grand supercycle backtest

The Wave IV Grand Supercycle ? I hope not. Wave 4s are corrective waves. It typically retraces 38.2% of the previous Wave 3. Though not a large percentage, the degree of correction does matter. I had my count in a supercycle degree correction, however if things are really that bad and we are indeed in a grand supercycle correction where year 2000 is the peak of grand supercycle wave 3, we are in serious trouble. A grand supercycle lasts 100-200 years. Even if a mere 38% correction in price and time, we'll not going to finish this bear until 2020s. I am familar with this time frame due to the sign of Pluto in Capricon. However, the indicative bottom value of DOW is giving me the goosebumps. I knew Pretcher had already set the targets to the end of this bear at DOW 400. Yes, 400. However, I've always found him to be a extreme bear. So I've always tried not to take him too seriously, especially with global central banks taking a pro-active approach to induce credit into the markets and trying to prevent deflation.

Greenspan kept interest rates too low for too long, creating the dotcom bubble. After the cycle correction of 200-2002, capital flowed into the housing markets. Another credit induced bubble appeared, this time the housing bubble. Bernanke tried to prevent deflation and pumped liquidity into the markets. He tried to keep inflation in check as well. But will he succeed ? Watch the CPI.

Deflation is sometimes neccessary to wash away the excesses so that a new and better system can evolve. Preventing deflation is postponing the inevitable, not solving the crux of the problem. No one wants to be remembered as the one who caused the misery of the world. But if "morphine" is injected to a sick patient trying to keep him afloat, there will come a time when I do not even dare to think about.

Courtesy of Daneric's Elliot Waves :

I've been showing a lot of long term charts lately because I think we are nearing an important juncture: the resumption of the Great Bear market and on the precipice of a very scary move downward. So I'd like to revisit the Supercycle wave V theme yet again.

As most of my readers are everyday traders, you will know what I mean when I say a backtest may be occurring. Simply put, I am proposing that this Primary wave 2 rally is nothing but a massive "backtest" of a very long-winded Grand Supercycle upper channel line that resides very near where the market is today. Allow me to explain.

Elliott Wave theory, as laid out by Robert Prechter, proposes that the 2000 market top was a Grand Supercycle wave III top (in orange on chart) that stretched some 220+ year. It virtually aligns with the birth and rise of the United States. Within that Grand Supercycle wave III, there exists 5 subwaves of Supercycle degree (in purple on the charts). 1929 was the top of Supercycle Wave (III). After the Supercycle wave (IV) price low in 1932, a final Supercycle wave (V) impulsed upward in 5 subwaves of Cycle degree (blue). We cannot see all the activity prior to 1900 on this chart engine as I am unfortunately limited in what I can effectively show. So I make some assumptions based on sound EW theory. Allow me to explain some more.

A basic tenet of EW theory is the concept of channeling. Basically the price peaks of wave's 1,3, and 5 connect on a trendline and the peaks of 2 and 4 connect on a trendline. These trendlines typically form parallel trendlines, or whats known as a "channel". Again, channeling is a key concept of EW theory and gives us some of our basis for how we interpret very long term charts.

Every 5 wave structure from the submicro, to the Grand Supercycle, adheres to the concept of channeling. Just because a wave is very large (220 years long) does not mean it is more complicated. On the contrary, the larger the wave, the more closely Fibonacci expansion ratio targets are met and the more channeling adheres to basic concepts of connecting wave peaks 1,3,5 and 2 and 4. However there is something known as "Overthrow" on very powerful waves no matter what the size. That is where my charts come into play.

Again looking at the chart, Supercycle wave V (purple) lasted from the 1932 low to 2000 top. This 70+ year wave consists of 5 "Cycle" subwaves, labeled in blue. In theory, the blue Cycle subwave I, III, and V peak should have connected on a channel line (blue) just as subwaves II and IV connect. But something happened at where the Cycle wave V peak was "supposed" to end at about the red shaded dot area.....it extended above the channel line.

So looking at the charts, Supecycle wave (I) (not shown as it peaked in about 1837) , (III) and (V) should have also connected on a channel line (proposed purple). But purple Supercycle (V) also overthrows the purple channel line.

So based on this we can assume Cycle wave V should have ended at the touch of the upper blue channel line in about 1996 at DOW 5500. This is the red dot shaded area on my charts. You can see it struggled here yet it finally plowed on through and this is when the market got really extended and things got crazy. It kept on going until the 2000 orthodox price peak occurred. This 2000 top is the green shaded dot.

The advance above the purple upper Supercycle channel line was the result of a hyper-extended cycle wave V at the top of a Supercycle wave (V) in turn at the top of the most bullish Grand Supercycle wave III in history. It experienced "overthrow" of the channel and ran wild for a few years. This overthrow was largely the result of the expansion of credit which allowed people to borrow their way to a way of life that nature would normally keep in check. This is what Prechter could not possibly foresee nor predict.

Social mood was, in effect, "borrowing" from nature's laws. It did this through the Great Asset Mania, the greatest in the history of mankind. People were in a good mood and it reflected in both social and economic activity, asset valuations, and speculative fever. Laws were loosened at the very time when they should have tightened. Such is what happens at the top of a 220 year Grand Supercycle wave III. No one can see the top and no one can see the subsequent drop.

Then the Great Bear market began. A retrace Cycle wave "a" back to about 7250 occurred in 2002 and the DOW eventually met back up with the Supercycle purple upper channel trendline. This is the blue dot area in 2002 I show on the charts. It bounced off this trendline (blue dot area on the charts) and credit expanded yet again in another bubble of asset mania. Except this was a "b" Cycle wave and was actually a false rally built on a house of cards. The DOW was forming a corrective "expanded flat" in which the b wave price high (black dot area) goes higher than where the previous wave 5 price high occurred in 2000. We suspect this is a b wave because "real" valuations stopped long before the actual 2007 price peak. In other words when you were buying Valero (not a DOW member but just an example I thought of) at $75/share in 2007, when they are/were loaded with debt, you were buying a fantasy b wave cycle top. You can be sure that corporate debt fueled this expansive b wave valuations on the DOW 30 stocks. Prices were pumped way up on credit and the subsequent drop from 2007 - 2009 was harsh.

Regardless the market managed to stay above the Supercycle wave upper channel (purple) line after bouncing off in 2002. But in 2007 the party was waning and b wave was waning. The nasty Cycle c wave would begin. So the DOW actually topped in 2000, had an expansive Cycle (in blue) "b" wave rally that carried prices above the 2000 top in yet another credit -expanded bubble in an expanded flat. An "expanded flat" b wave occurs when the preceding wave was of such power that the main trend continues to "carry through" on the subsequent corrective wave. So the 2007 DOW top was a b "corrective" Cycle-sized wave and a false rally wave at that. The extreme sharp drop after the top confirmed it in my book.

So the Cycle c wave of that expanded flat is playing out now. Since an expanded flat is a 3-3-5 pattern, the current proposition is that Cycle wave c will consist of 5 Primary waves down that will eventually try and reach the lower purple channel line of Supercycle degree. Hence the less-than-1000-DOW target in a few years I show on these charts.

But Dan, the DOW seemingly traced 5 waves down from 2007 peak already! What gives? So aren't we done with the bear market for now??? Doesn't those 5 waves down form the Cycle C wave of your proposed 3-3-5 Expanded flat? The theory is no, we are not! Why? Because we had likely only 5 Intermediate-sized waves down which only formed Primary wave 1 at the March 2003 low. Toggle these charts to unlog scale and you can see it doesn't look at all so wrong.

And hence the "Primary Wave 2" (P2) rally we are in now. And after P2, comes a nasty P3 in which prices seek out the lower purple Supercycle channel line I show on the charts.

Which brings us to my main point: P2 is merely a massive "backtest" wave testing the upper purple Supercycle channel line (the purple shaded dot on my charts). And as traders, you all know that when a backtest fails, it heads to the lower channel line. And since there was significant "overthrow" of the upper channel line, the theory holds that there may well be underthrow on the way back down.

In addition, allow me also to state why Prechter theorizes that the DOW will head back to the DOW 400 (yes four hundred) area: Because if we are in a Grand Supercycle wave IV then according to wave patterns this correction should take us back to the previous subwave (IV) price range. That is a basic tenet of EW theory and you can see me often point that out on squiggle charts....so yes they should apply to Grand Supercycle wave charts too!

And the previous subwave "4" of Grand Supercycle wave IV is Supercycle wave IV which was...DOW 400 or less from 1929 to the Supercycle price low of 1932. So the theory holds prices should retrace to this area. Yes it seems unbelievable that the DOW could again be less than 500 but it was only 1975 when it was 570. So go figure.

P2: A Massive Supercycle channel backtest that should fail. Nothing more, nothing less.

And Cycle C wave should consist of 5 primary waves down forming the back end of an expanded flat on the DOW or something to that effect.