The ongoing revolutions in wave of 5 of 5 of the hyperinflationary Armageddon

In October 2010 the beginning of wave 5 of 5 of the hyperinflationary collapse (‚rocket mode') was officially proclaimed (in the premium area). I had been waiting for this monumental event since 2006, as I expected it would dramatically change the markets & world... Since October 2010 I am probably the biggest bull on the planet. To my knowledge, no other forecaster has been able to anticipate the tremendous upside pressure in the inflation marketsToday the inflation markets are commodities & equities, which usually have a high correlation with global liquidity., i.e. in the (Western) stock markets & the entire commodity universe since last summer. In this article I'd like to discuss the background & implications of this and present an interesting sentiment indicator, namely the analysis of „Google Trends".

Wave 5 of 5 of the hyperinflationary Armageddon is characterized by monetary expansion & inflation getting out of control, so that the inflation-protecting markets (stocks & commodities) are sky-rocketing. Historically equities (!) are the best inflation-protector & not commodities, as is often falsely assumed. The real-world global inflation rate apart from massaged official numbers has now risen to the highest level in 30 years, which has already triggered massive civil unrest in the poorer countries. War & high inflation are always Siamese twins. The geographical focus of the ongoing revolutions was determined by the 1/4/11 solar eclipse which was visible over North Africa & Middle East (as discussed on January 2nd in the premium area). For many years I have been projecting the year 2011 as the next peak of the global martial activity - and revolutions being the most productive use of this energy. The exact time trigger was the square (angle of 90°) of the revolution planet Uranus to the Galactic Center (GC) in January 2011. The GC is extremely important, yet it is not duly taken into consideration by my financial astrology colleagues. The 4th harmonic (0°, 90°, 180°) of Uranus & GC is the global revolution cycleA cycle is a recurring event in the markets. (duration: 21 years):

In October 2010 I forcefully warned the premium subscribers of Amanita Market Forecasting that we had just started a long period where the bears will be hunted down mercilessly, so that selling short is strictly forbidden (except for daytraders)... Luckily, the Amanita subscribers have benefited a lot from this extreme & extra-ordinary call: between November 2010 & February 2011 the benchmark index S&P 500 did not decline longer than for a single (!) day (allowing a tolerance of some tenths of a percentage point). The US stock indices, the DAX & commodities (as measured by the RICI index) have risen with an annualized rate of a whopping 60-80%. This is historically unprecedented, a silent revolution in the markets.

The beginning of wave 5 of 5 was almost precisely 76.6The 76.6-year cycle dominates the financial markets and the economy, especially the stock markets. Its ideal length is 37 x 108 weeks, both numbers are very important. The 108 can be considered the number of astrology. years (37 x 108 weeks) after 1/31/1934: on that date the dollar was devalued by 40% against gold. 76.6The 76.6-year cycle dominates the financial markets and the economy, especially the stock markets. Its ideal length is 37 x 108 weeks, both numbers are very important. The 108 can be considered the number of astrology. years later was 9/1/10 & history does repeat like a clockwork: fiat money started to depreciate dramatically against real assets almost exactly with that date. The spearhead of the revolution against the fiat money fraud was silver which nearly doubled. The 76.6The 76.6-year cycle dominates the financial markets and the economy, especially the stock markets. Its ideal length is 37 x 108 weeks, both numbers are very important. The 108 can be considered the number of astrology. year has been successfully used for many years with excellent results (Link1, Link2).

Very few financial analysts are aware of the basic premises of technical analysis. One premise not recognized by 99% of the analysts is that the money in the market remains approximately the same. I try to illustrate that claim using the example of mutual fund cash levels. Let's assume that the levels are very low, usually a bearish omen. However, because of the printing press running day & night in wave 5 of 5 more & more money is moving into these funds, which is then flowing into the markets. Therefore the markets may continue to rise even with theoretical cash levels of 0%... against all historical examples.

So in wave 5 of 5 one has to be very careful with all monetary indicators: they may work less, not at all or even 180° different compared than in the past. That's why sentiment indicators are getting more important, especially those which are not widely watched. One of them is "Google Trends", yielding good results. "Google Trends" is an excellent indicator telling us which guru the crowd is currently adoring. Then you simply apply the basic rule of contrary analysis that the crowd is almost always wrong (e.g. following the wrong guru) - and bingo, you arrive at a likely direction for the markets. The spikes in the "Google Trends" charts are decisive because they are indicating a run of the crowd:

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It's the ultimate nightmare for every market forecaster to have a "Google Trends" spike. From that day on it should be easy to make a big buck by betting on the opposite of the trend called. Being prominent according to „Google Trends" means one has become part of crowd madness. Thus the daily prayer of the analyst should be, "Let this Google Trends cup pass from me." ;-) From an ontological point of view it's clear that the purpose of the markets is to separate the trader/ investor from his money.

My sympathy goes to an excellent US cycle analyst (not listed by Google Trends) that was one of my key teachers at the turn of the millennium - I am very grateful for that. Since the summer of 2010 he has delivering permanent top calls, destroying his excellent reputation acquired over many years. Very few analysts realize that neither fundamental nor technical nor astrological nor cyclical factors continue to work as they did in the past. Of the few who realize that permanent character change in the markets (usually by using statistical methods) only a fraction is able to psychologically bear the consequences, e.g. that decades of research may be partly for the birds. More on the galactic acceleration of time in the next free Amanita newsletter...