FIRE A SHOT OVER THEIR BOW!

Have you ever heard that saying?  When the navy is trying to get the attention of another ship who’s not listening or complying to their demands, they will fire a round of artillery right over the top of the offending ship’s bow.  I’ve heard that it makes quite a shocking sound and it reminds the other captain of the precision by which that navy can plant an explosive shell if necessary.

Interestingly enough, as part of the rhythm of God that I’ve been discovering over the years, the market also gives “shots over the bow” to warn people when that market is finished, or when it’s just getting started with an explosive move.  The fact is that most people don’t know which way the market is going, and that is the golden, multi-million dollar question.  Which way are we going?

Four years ago, the S&P 500 market sent a shot over our bow and told us that it was time to get into this explosive market.  Then the market headed straight up for 4 solid years.  As the market topped off this last Summer, many people speculate down, sideways, up, down then up, etc. etc.  However, the rhythm of God seems to give clear “shots over the bow” to give warning when a market is finished going up or down.  Looking at the S&P 500 daily chart below, the first shot came on Oct. 19^th, 2007 and the second shot came November 9^th, 2007 as a confirmation that the upward momentum of the market – breaking new highs – was over.  These two warning shots signified that we should prepare to break new lows.

As we can see with the S&P 500 daily chart above, we have been breaking new lows, and just crossed a very serious new low today with a powerful move downward which should make headline news.

Why did this market move down?  Many will say the sub-prime crunch, the weakening economy, the weak U.S. dollar, and so on.  However, I just see God’s rhythm in play on the charts, perfectly and mathematically telling us the zones where buyers and sellers should be showing up. How far will the S&P drop?  All I can say is that it should continue to break new lows until the buyers change their minds and show up for work.  As it stands, the buyers haven’t come to work faithfully since Oct. 19^th, 2007 when they went on strike.  

How do you enter the markets based on these signals?  When playing daily charts like the one you see, we would enter a position trade that allows us to stay in a trade from 1 month to a few years normally.  Once we got our first 2 signals from the market indicating that the next long term move was down – we would then exit our long holdings and prepare to short the market to new lower lows.  Now I’m not telling you what to do, and this current move to lower lows is already over – so don’t make any moves too late.  However, I do want to encourage you to learn the rhythm of God if you’re going to enter any market.  It’s imperative for you to know which way the market wants to move.

Let’s look at GOLD (below).  Gold is responding to a weakened U.S. dollar, and it’s continuing to head up up up.  As it hit $881 today, it looks like the first major resistance is at the $920 area.  However, Gold gave us a “Shot over the bow” on 9/03/07 that said, “Get ready, we’re going to the moon and only God knows when we’re finished!”  This was what I teach as the “Crack Run”, which gold and silver are currently in.  Indeed, from that $686 level, it’s now up almost $200 in only 4 months – and threatening to go higher.  (Warning, don’t take a leveraged gold trade unless you know the precise, low risk place to enter that trade.  You will not know this without former education).

Silver is moving higher, possibly to move higher and faster than gold. A Monex alert came across the news wire today indicating that gold was up 2.3% today, but silver was up 3.7% in a blazing hot move on it’s way to break new highs.

I’m not telling you what to do with your money, but I am telling you that you need to get educated in the world’s financial markets.  The bible says that you and I should loan and not borrow.  That means we need to know the ways of the banking institutions and the markets.  Be as wise as a serpent and as harmless as a dove.  Gain wisdom.  Though it cost all you have, get understanding.

I encourage you to go to www.monex.com and call them.  Ask for their FREE DVDs on silver and gold.  They not only send out free materials, but they sell silver and gold in case you don’t know where to turn.  Once you see the DVDs, you may be inclined to get some long term gold or silver in your hands.

Once you’ve watched the DVDs, get educated in the ways of God’s rhythm.  The fact is that every move upwards will fail at some time.  Most people don’t know when that time is.  But you can know with great precision when those times and seasons are upon you.  If you’re watching and listening, you can know when the bow shot warning is fired so you can get on the right side of the market.

I encourage you to join my free periodic webinars to the public.  I also invite you to send this newsletter forward to other interested Christian people and have them sign up for my free newsletters (links below).  Lastly, we have new students getting ready to start their formal education in advanced market mentoring, and I want to encourage you to consider learning the rhythm of God in the markets.  This will be something that you can pass on to your children and grand children, and your knowledge should forever change the way you look at any and ever market that you enter, whether buying and selling homes, businesses, cows, wheat, Starbucks and more!

01/08/08  Let’s look at AAPL (Apple Inc), you know – the guys who own the technical market with the new I-phone, I-Mac, the I-Pod and I-everything.  You gotta love them!!

AAPL just fired a bow shot warning 2 days ago that signaled that the strong move upwards for AAPL is over. Now that doesn’t mean that AAPL won’t go back up again, but it does mean that my system is telling me personally that AAPl most likely will not break a new high before it plunges lower – possibly much lower.  It just hit $200 a the beginning of the year, and it’s been on a crack run upwards since 2004.  I encourage you to watch AAPL over the coming weeks with a close eye. Will it break new highs or will it make one last futile attempt before plunging lower?  That is the question you should ask yourself.  For me, the bow shot was very clear and persuasive.

I might not be buying AAPL personally over the next few months, but it won’t stop me from dreaming about my new I-Phone that I hope to have one day!  My wife and I are dreaming of a pair of them!

Keep your eyes steady on AAPL and let’s track the “Shot over the Bow” that just came to AAPL, just as it came to the S&P500 in October 2007.

Sincerely,

Dr. Daniel Daves