Friday, January 12, 2018

The Impossible Math is Roaring - Can you hear it? Dollar Dumps, Bitcoin, Silver, and Gold Win in that Order!


Wow, the phony stock market rose 200+ points yesterday, 200+ points today!  That’s .8% a day, pretty impressive!  That is until you consider that gold rose 1.9% during the same time period, or that silver rose 2.5%! 

Yes, Bitcoin is moving sideways, for now, but don’t think for a second it will stay that way.

The mainstream says that stocks are going up due to the new tax plan.  Gee, hasn’t that been the excuse for the last 8,000 DOW points?  They say that the E (earnings) is going up, and that price has to catch up, LOL.  Is that what’s really going on?  Or is it that we are just making the impossible math worse?

The "right" scoffed at Obama for doubling the national deficit from $10 Trillion to $20 (I scoff at everyone who doesn't 'do' math)!  That’s a double in 8 years (and it’s a lie because it doesn’t count the $5 trillion on the Fed’s balance sheet, nor the bailout of Freddie & Fannie, etc).  Then the math challenged came out and said it likely that the Trump Administration would add another $10 Trillion.  Oh no it won’t… it’ll be MUCH worse than that, it has to be!

I said "unlikely" to that math, and now I’m already being proven correct.  You see, to achieve the same feeble growth of the Obama Administration, one would have to maintain that 8.75% rate of debt growth!  And if they do, then the deficit will DOUBLE again in the next 8 years!  It doesn’t matter who the president is – that means the minimum the deficit will be in the year 2025 is $40 Trillion, not $30 T.

But it’s going to be worse than that!  And if we weren’t lying about it so much, it would be way, way worse.

Just today we learned that our nation’s trade deficit WIDENED… severely.  Remember how Trump said he was going to reel this in?  The opposite has happened so far.  Not a knock on him, again it doesn’t matter who the President is or even what they do.

Not when you have impossible math like ours!  The bad math is growing exponentially.  Remember, almost all of our money comes into existence as somebody’s debt.  If you were to pay it all back, there would be no Dollars, no money, no economy at all!  So the growth in the deficit cannot even slow in growth at this point, or the economy will suffer.  Yet at the same time because the numbers are growing exponentially, the economy will suffer! 

See how that works? If I were in an airplane, I’d explain that it’s very similar to the dreaded “Coffin Corner,” where if the plane goes any faster the shock waves cause it to “tuck,” and if it goes any slower it stalls (faster or slower results in a lower altitude).  That’s where we are, welcome to Impossible Math. 

There are many signs of the Dollar losing its dominance in the World.  Remember the Dollar chart I showed the other day?  It showed a Head & Shoulders telling me it was about to drop strongly, and here you go – the current Dollar Index:



Keep in mind that this is the fraudulent dollar basket that compares the Dollar against all the other failing and fraudulent debt monies.

Here’s the Gold Chart – we have just begun wave 3 of 3 up!  This won’t even be the most powerful move, as wave 5s up in precious metals are the most powerful:



So what’s really happening?  The reaction to the Impossible Math correction of 2007/2008 created a tsunami of worthless debt dollars that flooded the world, but have mostly sat on central banker balance sheets and in debt instruments the world over.

Now that the U.S. has begun raising rates, this has created a huge differential that is literally energy – the massive ocean of Dollars is the medium through which the energy flows.  Right now that energy is flowing away from the hidden locations, and is finally moving into other “assets” seeking growth.  Energy likes energy, it seeks it out.  Energy causes growth!  Add energy to anything and it grows!  You, me, the planet, the money supply!

That’s what is happening, it’s a tsunami of debt money.  Bitcoin and the cryptocurrencies are going to be BY FAR the largest recipients of those dollars.  Silver will outpace gold in percentage growth terms, but gold will come in a strong third.  Nothing will be close to the Cryptos for growth.

Now let’s talk about government intervention...

The South Koreans have backed off their previous controlling Crypto statements and now say that no such thing as Exchange closures are likely, and certainly not anytime soon.

Then today our own Treasury Goldman Puppet, Secretary Mnuchin, says that they don’t want to see Bitcoin be like Swiss Banks who hide account information!  “We want to make sure that bad people cannot use these currencies to do bad things.”

LOL, OF COURSE NOT!  Because, you know, no one has ever done “bad things” with the Dollar, have they?  What a joke, not even a man behind the curtain, there is no curtain anymore.

What they really want is to control everyone and everything.  And to profit from your life energy.
Guess what?  All that centralized control is coming to an abrupt halt.  Yes, bankers and governments are going to do what they can, but what they can is almost nothing – they have been check-mated already, humanity is moving beyond them.

Look for TRUTH and FREEDOM to prevail – in the next few years you are going to hear a ton more of it than ever before.  The fake narratives will end as good people, who know right from wrong, wrestle the fake narratives, and those who create them, from the system.  This is a great thing, but it will not be pain free.

BITCOIN UPDATE:

It has been a quiet day on the Crypto front.  Yesterday, Bitcoin came back down to put a double-tap on the Triangle’s ascending trendline.  It then rose and has been hanging out all day around the magical $13,800 area.  This area has been crossed and re-crossed so many times in the past month that I can’t even count!  Again, that type of action is typical of a sideways formation.  Here’s the big picture Symmetrical Triangle, one more time:


A word of caution: If BTC price were to break that lower trend line, then it would be quite bearish.  That's not my thinking, but it is possible, so please pay attention to it.  Right now it means that if BTC were to drop significantly below $13,000, then more selling could occur.

To complete that triangle on the bullish side, we need only go up to touch the upper boundary, then we’ll likely pull back a little and then break through it.  The tip of the triangle occurs on January 25th, so I think it highly likely we’ll break above it sometime in the days prior to that date.

Sideways patterns like triangles eat time – they are a respite in motion, a gathering of energy.  That energy will release as that upper trend line is broken.

STOCKS:

Stocks are clearly in melt-up mode.  Again, this is 100% only due to the destruction of the value of the Dollar.  Stocks and earnings are measured in… Dollars!  The supposed earnings are near all-time highs, but the truth is that if the same pre-2008 accounting GAAP standards were applied, it would be clear that the current valuation of the stock market is much higher than at any point in history!!

Does that mean that collapse is imminent?  No.  Every country in the modern history of the world, that has a stock market, has been the highest performing in terms of percent stock market “growth” when their currency is in failure mode!  Zimbabwe, Venezuela, Argentina… all had the world’s best performing stock markets!  THIS IS WHAT FAILURE LOOKS LIKE!  Don’t think I’d want to own that…

Best,

Nate

Thursday, January 11, 2018

Crypto Update – Symmetry Lost, New Symmetry Found… Luke, Did I just feel a Ripple in the Force?

*Note for readers of the Crypto Updates - please go to Cryptonomicedge.com and sign up for email on that site.  Some Crypto updates and information will not be posted to the Economic Edge site.  The email sign up is found in the right hand column of the Home Page.  Also, feel free to click on the expand chart blue button on the new interactive chart just above the email form.  Once expanded there are several Crypto charts that can be accessed, and I can add more with good input - thank you.

UPDATE:  After breaking the wave 2 downtrend line and then perfectly entering the “fork” I’ve been showing, upwards momentum was beginning to gather steam, and then…

South Korea, whose Justice Department previously announced they were seeking new legislation to ban Crypto exchanges, combined forces with their Tax officials to raid a couple of the largest exchanges gathering evidence of tax fraud.

This, by the way, is straight out of the Controlling Sociopath’s Play Book – make an example out of a couple of “tax cheats” in order to scare everyone in line.  Definitely the controller’s stick approach.  I have a lot to say on taxes – like that a true sovereign nation doesn’t need them and in fact shouldn’t have them at all!  I know that sounds radical to everyone who practices coloring within the lines, but there’s a lot of history and reason as to how this is an inappropriate rule-of-law.  I’ll go over that more in future writings.

This morning the South Korean Ministry of Finance came out and said, “We do not share the same views as the Ministry of Justice on a potential Cryptocurrency exchange ban.”

Personally, I think that it won’t matter in the end.  Cryptocurrencies cannot be stopped.  But they can be slowed by not allowing people to put their worth less and less debt money into them.  While no real action occurred, I do think it affected the psychology of the market.  It put a damper on it, and for those who are watching it, like me, you could sense the energy drain.

Yesterday that caused a mini-crash as prices tumbled out of the channel and back down to what was a wave 2 downtrend line.

That descent broke the symmetry we’ve been following, and also destroyed my count by making a new lower low, which came after making a new higher high.  That’s unusual, to say the least.

And something else changed – what had been a relatively easy wave count, is now suddenly very difficult.  It is hard to clearly count either the up moves or the down moves.  Also, the up moves all of a sudden lacked impulse – something that should not be happening if we were, in fact, in a wave 3 up.  The other clue here is that the momentum and energy seems to be shifting every few days – back and forth.

When that happens it usually means that the market has entered a sideways pattern.  So I cleared my brain, and the chart of all my analysis and looked at it with fresh eyes now that a strange new low entered the picture.

What I found is actually a nice new symmetry – perhaps that’s what was happening all along, or perhaps the pattern morphed – both can happen.  In either event, what I now see is a very clear, and very large, symmetrical triangle – Please view the chart below and read the notes I added regarding this formation:



This is actually a very well formed triangle.  They are coiled springs, storing energy for the next wave.  The direction into a triangle is almost always the direction out of the triangle, so it should break upwards.  However, if it breaks below the bottom boundary shown on that chart, which as I type is not very far down, then I am going to exit my long BTC positions immediately.  If it regains that line, then I will reenter.  Should that bottom boundary break, it would be very bearish, triggering potential big Head & Shoulders patterns that are quite a bit lower than where we are now.

But if prices rise back up to touch the top of the triangle as shown, then I will be pretty comfortable in the symmetry of that triangle.  Right now, there is a distinct lack of upside energy – and that lack of energy is strongest while the Asian markets are open (so I am weary about tonight).

This pattern, if correct, will play out more slowly than the previous pattern.  It will have to break one way or the other sometime the week beginning January 22nd, so it could push back recovering to old highs until sometime in February.

I do think there are big players who hold Bitcoin knowing its potential value – they will not let go.  And that, hopefully, will keep a floor on the market as the weak hands exit.  I’m neither weak nor strong – I use analytics to determine potential direction.  Right now the fundamentals say that BTC is going to win the battle, it’s a math thing.  Technical Analysis is saying a sideways formation is occurring.  Psychology is a little bit negative right now, so sideways we go until proven otherwise.

A Ripple in the Force?



Yes, I believe so!  This morning it was announced that Central Banker favorite, Ripple, has made an agreement with MoneyGram through a new service called xRapid.  They site Ripple’s fast speed and low fees as a reason for partnering with them.

But again I’ll ask – what does that do for the everyday person?  The consumer?  I think very little.
But what does it do for them?  It gives the banks another currency that they can use to draw money away from Bitcoin and the other truly beneficial Cryptos with.  It also simply gives them another money factory where they can crank out an endless supply of tiny, little, fast, Ripples!  That makes them wealthy, while in the end will make those who hold Ripples poor – sound familiar? 

My advice, run from Ripple like the plague – it is NOT a store of value coin, and it will not benefit humanity.  Thus look for it everywhere the current seated power plays… 

Also, while Ripple was a good play from ten cents to three dollars, it will never be a big dollar coin.  In fact, if the price of Ripple gets too high, look for the central controllers to devalue it by making more.  They will do this because they want a low price, fast transactional Crypto for the masses. 

Massively avoid it if you can. 

A good alternative in the same space as Ripple?  Try Stellar Lumens for an investment in humanity – they are the anti-bank transactional counter to Ripple – it has room to grow in price, it is open source – not centrally controlled, and it is community owned, not sociopathic owned – meaning that the incentive is to grow in value, not in quantity.


Did you feel that Ripple in the Force?  Be a part of the quiet revolution and shun bank anything… humanity will be rewarded for your efforts!

Wednesday, January 10, 2018

Bitcoin Breakout – Wave 3 Underway, and Why I Am Buying a 5 Year Put Option on Berkshire Hathaway!


That Bitcoin chart is so beautiful!  Wave 2 down was one of the most symmetrical waves I have ever seen.  For the past couple of days I have been showing the wave 2 count, wave 2 downtrend line, and the associated “fork” that I have been projecting.  I showed how each b wave perfectly touched the mid points of my projected fork channel…

This morning the final wave down occurred, and it looked like we would slide past the fork, but at the last second heavy buying came in and ran prices EXACTLY at the point that the fork predicted.  In my Bitcoin chart below, you can see that it touched the corner, completing the beautiful wave symmetry discussed in prior articles!



With that broken downtrend line, I am pretty certain that wave 3 up has begun.  The time is now proportional to wave 1 up, we are getting 5 wave up moves, and now to confirm this is the case we need to go on to make a series of higher highs and higher lows.

If you look at the bottom of that chart you will see the macd and momentum indicator.  I drew in a red line showing the positive divergence associated with this move.  For the last day I have been seeing positive divergences, clues that the downtrend was about to end.

Once again, I think that Bitcoin challenges the $20,000 high sometime near the end of this month – if my wave count and projection are correct, it’s definitely the best time to buy.  Wave 3s are the most powerful up moves, so buying in at the end of wave 2 is the best entry point there is – Right Now!
WHY I’m Buying a 5 Year Put Option on Berkshire Hathaway!

This morning Warren Buffet opened his mainstream manipulative mouth to announce that “While he doesn’t understand them, if he could, he would buy 5 year puts on all the Cryptos!”  LOL, I love talk like that, it was only yesterday that JPMorgan Chase’s CEO, Jamie Dimon, took back his Bitcoin is a fraud comments, saying that he now sees Cryptos as legit, and regrets making those comments! 

Not only did he not understand this space, but his career, self-esteem, and livelihood depends on propping up the old, usurious system!  Now he gets it?  I doubt it, if he did, he would leave JPM, and start his own Crypto exchange!

Regarding the “Oracle of Omaha,” there has never been an investor that I know of who talks his own book more than him.  News flash for Warren Buffett, it is all the old world businesses inside of Berkshire that are going to be worth less 5 years from now than they are today!  Bitcoin will be worth vastly more than today, and I’m willing to bet Warren 1 Bitcoin against 1 share of Berkshire, that 5 years from today, that Bitcoin will be worth more than that share of Berkshire!  I’m seriously calling him out with this wager, if anyone can get this to him, I’ll stand by it.

What he doesn’t yet understand, but will, is that nearly every business he owns will be will be turned upside down by new business ventures centered on this technology.  And businesses who don’t get on board are simply going to be left behind.  

He also doesn’t get that the only reason his mainstream stocks are worth so many dollars, is that they and the profits in the companies he owns, are measured in dollars!  It is the Dollar that is the bubble, Bitcoin is a mirror reflection of the overproduction and improper rule-of-law underpinning those Dollars.  

Also going away will be his undue corporate influence on government and his ability to win laws and political gestures in his favor.  The world is truly about to undergo one of the most profound changes in human history, Warren can catch up later – I’m looking forward to my Berkshire share, even if it will buy only a fraction of a bitcoin in the year 2023!  I’m off to buy a 5 year put option on Berkshire!

I’m dead serious about that bet…

Nate

Tuesday, January 9, 2018

Coolest Symmetrical Wave Chart!

Since my last update, prices moved down to perfectly strike my target of $13,800.  That could be it for wave 2, we’ll know for sure by morning.

Yes, there is an ugly Head & Shoulders potentially in play if the neckline breaks, I’ll show that tomorrow. 

What I want to show for this post is the beauty of waves!

As I stated in the previous update, waves have a center point – that is the middle of the channel through which the waves travel through time. 

Time, by the way, is NOT a dimension!  Time is NOT a frequency (frequency is frequency!)!
Thus your watch does NOT tell time, it tells frequency!

Time is: The relative position, energy state, and motion vector of everything in sequence relative to one another – all matter, and all energy that is not in the form of matter.

Thus time is a sequence, not a dimension, not a frequency.  This is a HUGE misunderstanding of modern science with BIG implications that I’ll go into when talking science.

Take a close look at the chart below.  You’ll see this is all of wave 2 down – two sets of ABC’s with little counter abc corrections in between.  Since wave 2 is all ABC’s we know that it is likely a corrective wave.


Also note in the chart the colored “fork” that I put on top of that “magnetic uptrend line.”  Now not the symmetry here of wave 2 down – Both “b” tops touch perfectly the middle of each half of the channel.  The begging and middle of the wave actually forecasted the end of the wave before it ended!

If this is the end of wave 2, then I will be delighted if prices then move up the fork as it becomes a channel higher.  It’s a lot steeper in the upward direction than it looks here – the slope of that channel is targeting $20,000 by the end of the month, assuming our wave count is now correct again.

If prices break that downtrend line, then we’ll know wave 3 has likely started.

The fooling part of wave 2 is that there’s a small H&S and a bigger one – but if this wave count is right, they will not play out as Head & Shoulders, but we’ll stay on guard.

Just think the symmetry is cool.  Will be fun to see price movement from here.

Nate


PS – yes, Nate has a nerd side if you didn’t know already…

Crypto Update – Bitcoin Bulls, It’s a Matter of Degree!

Yesterday I said, “Time to buy Bitcoin with Both Fists!”

Well, today I’m saying that’s still true, but I think my call was about a day and a half early! 

When counting waves, sometimes it’s difficult to know what degree the waves are.  This is because each and every wave is itself comprised of smaller waves, while simultaneously it is also a part of a larger wave.  So, it truly is a matter of degree!

One clue that I was early yesterday was when I noted that wave 2 happened faster than expected.  I now think that’s because wave 2 was only half over, it needed an equal amount more time – and that fits better with the time length of wave 1.  Wave 1 up was about six days.  My thinking was that wave 2 should be about half that, or a little more.  That would make wave 2 three to four days long – it could finish tonight.

Also, we did break the (a) wave downtrend which was saying that the trend had finished.  But in fact there was a larger downtrend line that made itself clear today which the two halves of a larger ABC are following downward.

If this is what’s actually occurring, then we should bottom out in the next day or so, and at a target where the length of the last c wave is equal to the one prior which puts it potentially at the $13,800 -$14,200 range.

Also, this wave 2 down is producing an outline for a potential “fork” path/channel higher once it completes.  I think it coincides nicely with the “magnetic red uptrend arrow” I’ve been tracking.  The more touched and bounces off a line, the stronger the magnetic force!  This is what makes a channel and a "fork," the magnetic line is the center point – think about waves on an oscilloscope, the energy can only get so far from the center, then it pulls back.

Here’s a close in view of wave 2 and the updated count:


While I think this looks correct, there is also a rather scary potential H&S when I zoom out.  It doesn’t look right because of the recent declines below what would be the neckline, but I can see how someone bearish could read this count in a bearish way.  So we need to be cautious until the current downtrend is finished.

That’s what makes a market, isn’t it?  Some can see a bear case, while others see a bull case.  I’m pretty sure the bears are going to be wrong, but this wave 2 is certainly large enough to scare us Bitcoin Bulls.

Here’s a zoomed out view of the Bitcoin chart:


I know that very few of you are Elliott wave, candlestick, and Fibonacci experts!  So please forgive the technical jargon.  I do try to mix in education when I can, so today let’s talk about the three analytical components of any market, they are Fundamental, Technical, and Psychological:

1.  Fundamental:  This is the underlying reason why a market is traveling a certain direction.  For example, right now all the markets are going up strongly.  Stocks, Bonds, real estate, Cryptos, commodities – heck, everything.  The reason is simple.  Central banks around the world have created too many debt Dollars and other currencies.  Thus when measured in dollars, stocks, real estate, Bitcoin, trade, profits, and well, everything measured in Dollars, appears to be going up, up, and up!  But it’s an illusion – we are simply making dollars, and that gives the appearance of a strong economy, regardless of whether it actually is or not.

Also, since the Bond market was in a bubble, as the “FED” raises interest rates it causes money to flee bonds and go elsewhere.  There were trillions upon trillions too many dollars in bonds!  Heck, the Fed had nearly $5 trillion on its balance sheet alone!  Higher rates make bonds worth less, thus people flee them – that money then flocks to stocks and other assets. 

Another fundamental is that higher rate differentials cause dollars to repatriate to the U.S.  It is differentials, after all, that are the root of movement and energy.  By creating interest rate differentials, our Fed is causing dollars overseas to come back to the U.S. and again they flow into assets.

That’s THE fundamental driver – the overproduction of debt dollars.  Bitcoin is simply a mirror of bad policy and what was an illegal (true conspiracy) event in the year 1913.  In a nutshell, it boils down to the math that underlies it all (most can’t see how mathematical differentials are the root of all movements, that movement travels via waves – there are a lot of “experts” who will tell you that math has nothing to do with the movements of markets and they couldn’t be more wrong).

2.  Technical – This is the reading of the expression of the math that fundamentally underlies it all.  There are many techniques, each a lengthy topic of discussion.  But Elliott Wave count is an important tool, one that all investors should understand – even if it is easy to miscount until you can see all the waves in hindsight.

3. Psychological – As waves move, so too does the mood of the participants within a market.  Yesterday, I mentioned to watch the fear as Bitcoin descends steeply, but that fear will turn to euphoria as we get into wave 5 of 5 of 3!  That psychology also is a driver of energy and thus waves.  The psychology forces euphoria… the math grows until all the participants who can get into the market are.  Math takes over because all the money that is available is in, there’s no more (unless the Fed keeps printing trillions!).

This means that by definition, the majority of market participants MUST be wrong when at wave turn points!

You, however, can be one of the few that is correct, by understanding how psychology drives waves; how the math of money underpins it all; while technical analysis gives you a window through which to view it…

Best to everyone,


Nate

Monday, January 8, 2018

Wave Mapping Says Time to Buy Bitcoin with Both Fists!

Wave Mapping Says Time to Buy Bitcoin with Both Fists!

Over the weekend Bitcoin wave 2 down struck in full force.  It followed the wave mapping I presented earlier almost perfectly.  Time wise it was faster than expected, but it did retrace a perfect Fibonacci 61.8% of wave 1 up.  Here’s my big picture chart:


Note how prices keep gravitating to that magnetic uptrend line (fat one with arrow)?  When above, they fall.  When below, they rise.

I believe we saw fear and capitulation selling volume on the really nothing news out of North Korea that they would enforce their laws regarding banks and Bitcoin.  No kidding?  Of course the media pinned this news for the selloff that we knew was going to happen already, as spelled out in the waves.  Zero Hedge then proclaimed, “Cryptocurrencies Stage Dramatic Comeback After Flash Crash!” 

Priceless!  A great example of the psychology of waves.  The media pins blame on whatever was happening at the time, then sees miracle recovery from “flash crash.”  Of course readers here knew this was going to happen, and the H&S produced over the weekend gave me a target of $14,000 which happily coincided with the typical wave 2 Fibonacci 61.8% retrace.  So I was 100% out of Bitcoin for wave 2, and profited playing rocketing alt-coins, then went 100% BTC on my target and what was obviously capitulation selling this morning.

So where do we go from here?

There will now be 5 major waves up for BTC.  Bitcoin will outperform almost all other coins during this time.  All the negative people talking about BTC not be a good currency, that it’s slow transactionally and expensive to move around.  True enough, but here’s the deal… BTC is limited to a fixed quantity of only 21 million ever, and several million of those have already been lost! 

Coins that come out with billions and are fast transactionally are great, but they will never be the store of value that BTC is, and they will not supplant BTC if your intention is to grow your money over time.  So my take is hold BTC for appreciation as debt money implodes.  Yes, we can trade alt-coins to make money, but individual alt-coins will only outperform BTC in the short run.

Does that mean others can’t have higher market caps than BTC?  No.  They can, but those transactional coins minted by the billions will never be worth what 1 BTC is or will be.  Again, only 1 in every 500 people can ever mathematically own a whole bitcoin – that’s the math that simply cannot be ignored.  So the naysayers are going to be eating crow as BTC makes a new primary high by the end of this month.  Then the next target is the $40,000 range, I think, sometime in the first half of this year.  And I’m sticking to my prediction that it will touch $100k before the end of the year, although may not finish there (and I do expect very large and scary 50% or more corrections along the way).

NOTHING MOVES IN A STRAIGHT LINE

Everything, and I do mean everything, is comprised of waves.  Free markets move in primary and sub waves on many different levels of size.  The primary direction almost always moves up in 5 waves, and corrections are 3 waves – ABC.  Ever since the Bear market bottom at $10,400 we’ve been making 5 wave moves higher, and 3 wave corrections, telling us that the bear is over and a new primary uptrend has begun.

Waves are energy!  Waves must pull back in order to have motion.  If they don’t pull back, then they can’t move forward, they would be like a lake with a mirror smooth surface on top, no movement, no waves.  If you understand the waves, then you won’t get caught up in the emotions of each, and you can observe them as an unbiased observer.  This will lead to fewer mistakes and much higher profits.

I now expect wave 3 to start out rather slow, then develop speed and force as it proceeds.  Why does it happen that way?  Because as wave 1 up starts, it runs into the first small degree wave 2.  Then it proceeds, then runs into a larger subwave wave 2.  Wave 2s are the most powerful corrective waves, whereas wave 4s tend to be more flat affairs, all having to do with investor psychology (fear giving way to greed).

Once all the wave 2s are over, then wave 1 of 3 starts powerfully.  Then wave 2 of 3 sets it back.  Then wave 3 of 3 moves with the most force of all, shocking those who were still bearish.

As I type, we have a new V bottom, and are working through the first small degree wave 2.  Things are going to move quickly as we start to get past all those wave 2s. 

Watch the psychology of wave 3 progress.  We have fear and a lot of naysayers now – including those who don’t do math who think Bitcoin is going to go to zero or that it’s a tulip!  Those voices will give way in 3 of 3, and by wave 5 of 5, you will hear vast euphoria with a few more voices calling it a bubble. 

The bubble talk will, and is already giving way to the correct understanding that the true bubble is the Dollar.  This is the reason the stock market is melting up, it IS the “everything bubble,” and it is going to lead to a change of WHO is behind the production of our money!  It is also going to change the power structure of governments all over the world, supplant banking as we know it, change how multiple industries operate, displace many old companies, and this technological wave will even reveal reality and raise our consciousness.  

Bring on wave 3, I’m positioned and ready!  Are you?

Nate

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