Foreign markets are not reaching new highs along with U.S. stocks. That is an ominous sign. Patterns in derivative are not of the kind that precede big moves to the upside.

The forecast I made on July 31, turned out to be close to perfect. The significance to that, again, is that it confirms that the market is rigged to go higher to the greatest degree possible. Why, I am not that good at making short term forecasts. Hardly anyone is, perhaps no one.  The forecast from last week is below.

http://fantasyfreeeconomics.com/wpadmin/drawing-in-shorts-to-goose-the-stock-market/

I have been completely right since the beginning of the year. When a market is rigged, it is easy to figure out what it is going to do. It is  most important to know what the riggers want it to do. With the stock market, organized crime and government have a symbiotic relationship. They work together and both benefit.

I frequently point out that there is no patriotism with respect yo the mob. They will leave the arena rapidly as soon as the Federal Reserve can no longer guarantee them profitable risk free trades.  Unless, the Central Banks buy all of the excess stock that hits the market, the mob could cut and run any day now. The drop could be catastrophic when that happens. Most Americans will loose close to everything they own. There are too many variables to be more precise than that.

The probability of an unforeseen exogenous upset occurring is increases. Fantasy Free Economics is the science of survival. That is different than Ivy League economics, which is based in fantasies and euphemisms.  I discuss markets constantly and not all of them are money based.  Democracy is a market for representatives or leaders,

When the elite, organized crime, media and government thwart the will of voters they are destroying a market. A highly significant facet of democracy is that when democracy works perfectly, it is a substitute for violence. In money based markets, that principle works also. Violence is greatly reduced when markets are free.

Democracy is not functioning anywhere in the world except somewhat in England. In the United States, the past week has been devoted to squelching the will of voters. People from the president on down have been trying to undo what voters did in the Republican primary. When people have no voice in government, violence breaks out. Leaders see war as more reasonable since citizens have no influence over them.

Always be on the alert for riots and terroristic acts. Chances are increasing that a foreign nation will launce an attack on the U.S.A.

There are two scenarios that might might take the market down next week. Of course, the mob might cut and run.  Violence may begin, either in that we will be attacked, riots or terrorism.  The Fed/Mob arrangement is losing the tools it has always had to work with.