The Options Box

[Poet]

Hi Koikaze:

Here is a market summary posted last night on Hahn's Corner, a for pay website to which I belong. I think Richard Hahn has been remarkably accurate in his analyses over the past seven months.

Bad news across the board. There are many ugly chart breakdowns. No sign of a capitulation washout event, yet. There are signs manipulation efforts are failing. There was no bounce to stability on the last day of options expiration. Yikes! You can just hear the derivative blowups exploding. Watch JPM for unusual signs of weakness, for they are the derivatives monster.

I was shocked the market was not muscled back up and away from the breakdown zone. Instead, we have a crash scenario in play. Many are looking for a crash to buy on Monday. The market never cooperates when people are ready for it. But then, I didn't think we'd break down so badly on Friday. Things might be worse than we can imagine.

Things are looking grim. As far as trying to buy in at the bottom, my only advice is to let someone else go first. Be sure you have the 1929 crash pattern in your mind before you commit capital to this freefall situation. In 1929, the first crash low was exceeded about a week later. There was a big sucker's rally for a few days. Because of our time wave projections on July 30, you can see why I have a great interest in this pattern.

Many investors are growing weary of the bear market that grinds slowly lower. We are near the point where many can't stand it any longer and will sell at any price to avoid the daily pain. That final wave of capitulation washout is ahead of us. Our time wave studies suggest the most likely time for a market crash low to be July 29 +/- one day.