COMMENT: Marty, you make so many forecasts on so many aspects of the world economy in politics, I am not sure you even keep track. You wrote back on March 9, 2017: “It appears that we are headed back to the mid-19th century when brawls broke out on the floor of Congress … We are looking at the risk of a complete breakdown in the country come as early as March 10th, 2020.” Trump refused to attend the St Patrick Day event in Washington because of the hostility with the Democrats. How could you pick even the week more than 3 years in advance?

JG

QUESTION: Martin, thank you for enlightening us. I have been following your blog for many years. I save posts referring to future important events, like the one you mentioned in the following one: “…..We are looking at the risk of a complete breakdown in the country come as early as March 10th, 2020.”
Was this forecast based on a specific cycle?
Thanks,
CC

ANSWER: Yes. It is an internal cycle; we run on government and the hostility between the two parties. It was due to turn up on March 10th, 2020. It is very curious that we get so much surrounding this event including the market crash. We did not factor in St Patrick’s Day. Trump declined to attend because of Pelosi, which is precisely what this cycle forecasts. Very curious.

QUESTION: Marty; I understand you do not support either side in politics, but what happens if the Democrats split?

KW

ANSWER: The Republicans were opposed to Trump when he was elected. You had people like John McCain who refused to even allow him to speak at his funeral. Once upon a time, the Republicans and Democrats worked together after elections. Today, the hatred in politics is really beyond all belief.

Trump simply represented a threat to their very existence. But Trump wrongly listened to the Washington elite and brought in people who were the very problem like Bolton. Trump was naive from the standpoint that he was not one of the oligarchs who funded government to further his business. That was the bankers, press, and military establishment. All three have been his enemies ever since. They are the primary donors who have filled their troughs regularly. Trump was just a lowly real estate guy that really did not have direct influence in that field – it was mostly state and local.

The split in the Democrats is indicative of the philosophy shift. They have pandered to the socialist agenda assuming these people are stupid and would never hold them to the promises they have made. This is coming back to haunt them as Bernie leads the pack.

Yes, Biden won South Carolina. But he has all the charisma of watching grass grow. The Democrats have spent $1 billion for the primaries which the press loves, but Bloomberg is $500 million of that. Hillary tried to buy the White House, and Bloomberg will fail. He is probably the most dangerous person ever to run for President in either party.

The Democrats will split over this philosophy for you have the core of the Party will rig the game against Bernie. Do we see the rise in violence against the corruption of the Democratic Party or against Trump? It is true that the there is an element of the Democrats who have been brainwashed to hate Trump and I really do not see what he has done which has been such a threat. Bloomberg suspended the Constitution with his stop-and-frisk that any rational period should have known was illegal. Then Bloomberg outlawed 2 liter bottles of soda, and removed term limits because he refused to leave office. The decisions behind all three of these moves gives me serious pause about this guy. Neither Trump nor anyone else in either party has acted so arbitrarily.

The breakup of the Democrats is not something that becomes a win simply for Republicans. We are looking at a clash of philosophies and if Bernie does not win the nomination, this may be more of the spark to violence than the hatred against Trump.

I have said many times, my concern is what comes AFTER Trump. I do not see someone stepping up from the private sector with sound mind. Bloomberg is a demagogue who is highly dangerous. I think the split of the Democrats will cause an unstable political base that will also infect the Republicans.

The older generation is losing its grip. The Clintons will be gone for 2024. The entire playing field will start to change. From there into 2032 we should witness the disintegration of government for all the socialistic programs will become unsustainable. What happens then when the people who counted on those promises realize it is all a lie? Will this be the political Great Awakening

QUESTION #1: Hi Mr. Armstrong,
Might the current correction be the set up for the long awaited slingshot move?
Regards,
BE

COMMENT #1: I just wanted to say thank you. I sold out on the ECM and bought puts on the market. You just paid off my mortgage.

God bless you!

HJ

COMMENT #2: Marty, you are the only person who has the guts to make forecasts in the middle of a panic up or down. Your calls are beyond belief. No wonder the big boys call you.

KE

COMMENT #3: Hi Martin. Do you think the Fed and other Central Banks will cut rates due to the coronavirus and/or the market decline?
Socrates really helped me avoid this correction and even make some money.

Thank you.
AG

COMMENT #4: Hi Martin,
I don’t recall you ever commenting on the NYSE Composite Index. Just in case you don’t know. The all time high for the NYSE Comp Index is January 17, 2020. Right in sync with the ECM turn on Saturday Jan. 18. Most peoples focus is on the indexes that are tradable. So it is understandable that most people do not know the NYSE Comp index synced up perfectly with the ECM.
Perhaps you could mention this on your blog when commenting on the US stock market monthly closing today.
This weeks BIG down move will only increase your legendary status as the worlds top financial adviser.
Thank you so much for the private blog post last Sunday giving everyone a big warning of what was about to happen this week. The high for the week in the SP500 futures was last Sunday night at the 6 pm open.
Big Time Move Martin. Thank you from the bottom on my heart.
Sincerely,
DP

REPLY: The #1 golden rule is simple: What goes up, also comes down! Experience is something we gain through life. It is not easily acquired. We must make mistakes in order to gain knowledge. If someone wants to become an analyst, you must be in the game a long time to learn the twists the markets will always throw at you.

In the New Yorker Article on me back in October 2009, they wrote: “Armstrong remembers him coming out of his office in September 1998, two months after he’d got short in front of the ruble crisis. Monica Lewinsky was on TV. ‘My oscillators just turned,’ Armstrong announced. He booked his profits, pulled out of the market, and went to his beach house, on the Jersey Shore.” The 1998 turn saw the S&P 500 peak the very day of the ECM. That warned me that there would be a serious crisis and that became the Long-Term Capital Management debacle when the Fed bailed out a hedge fund.  The currencies peaked 8/17 and the games began in September.

Here we had the NYSE, and even the Dow peaked on the ECM, but the Dow followed the NASDAQ into its high which was due in February. Our Panic Cycles were due this week into March. What I have learned over the years is the real opponent is not the market — it is yourself! People always want to blame someone else for their loss. They will be the sort of people who are incapable of ever mastering the markets because they are incapable of ever learning from their mistakes. Always remember, you are battling against your own emotions.

I have come to LEARN that the harder it is to do a trade, the more likely it is absolutely correct. That statement in the New Yorker that I went to the beach after closing my short positions was not a celebration. It was discipline, for it was very hard to cover shorts and flip to a long position emotionally when the entire world says there will be no tomorrow.

The entire purpose of the Reversal System is to provide definitive levels in a market that is NOTdependent upon human emotion — mine or yours!

It does not matter if we are looking at 1987, 1998, 2007, or 2020. The numbers are the numbers. In the case of the 2007 ECM, the very day of the panic began on February 27, 2007. I have explained many times that I discovered the frequency from a list of international panics between 1683 and 1907 spanning 224 years with 26 events. The high in 2007 came intraday on October 11, 2007, which was 26.2 intervals of 8.6 days, or in other words it was fractal. However, the highest daily closing was two days before on 10/09, which made it precisely 224 days.

There are people who are so desperate to discredit the Economic Confidence Model and that remains a mystery to me. Are they the Flat Earth types that simply refuse to consider anything? Or are they paid for by “The Club” who are desperate to make money trading against the people and manipulating them at will? I really do not know. All I can do is say, “Hey look at the interesting order!” This proves the world is not just random chaos. There is a Secret Cycle or hidden order behind the curtain.

Insofar as the pressure on the Federal Reserve, we can see that pressure has been building in the form of the Repo Crisis into February. There is a Directional Change here with February and we should expect higher volatility in April/May where we have a turning point and a Directional Change. The entire Repo Crisis may begin to cause a severe crisis of confidence by the time we reach May/June.

Yes, this appears to be the beginning of a slingshot move

QUESTION: Hi Martin,
Thank you for your great insights! We are thankful.
Often you have stated that you are happy that you do not have the age of 25, because of the chaos and economic crises coming ahead. Unfortunately, many of us (just like me) are 25 years old at this point in time. What advice do you have for us? How to build up a life? Where to go in life? Especially for those in Europe (for me in the Netherlands) are desperately in need for advice.
Thank you in advance,
Kind regards,
NB

ANSWER: Life used to be simpler I suppose. Governments were perhaps not as aggressive. Everything began to change from the 60s. But today, you can’t get on a plane without ID and you can’t freely take money someplace. The political world has gone insane and the hatred rising up is just astonishing. What is going on in Britain is an example of how Democracy is dead. People simply refuse to accept that their candidate has lost. Merely because a conservative posed with a bag of Yorkshire Tea, people are demanding a boycott of the product. It’s just a reflection as to how society is cascading toward a violent conclusion.

Unfortunately, we are entering a period of dramatic change politically. We are entering the final stages for the collapse of Marxist/Socialism. The year 1989 was the peak of the first 8.6-year wave in this cycle that ends in 2032. The conclusion of this cycle will bring a time for dramatic change where all the old systems are collapsing. The government has never been designed correctly post-World War II. I am trying to get this all out in a book for the average person. This will be a blueprint of how to redesign the government for the next generation when the time comes post-2032.