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Stock Cycles Forecast February 26, 2010 Page - 1 -

Written and Published by:Michael S. Jenkins

P.O. Box 652 Cathedral Station PO, New York, N.Y. 10025-9998 WWW.StockCyclesForecast.com Volume 25 Issue 14__________________________________________________________________________________________________

February 26, 2010 Dow 10,321

As Good As It Gets

If you remember the Jack Nicholson movie 'As Good As It Gets', his crazy, obsessive compulsive charactergoes into the psychiatrists' office and shocks the other waiting patients by declaring 'What if this is as good as itgets?' Not a pleasant thought if you have a mental disorder thinking there might be hope for a cure. The sameshocking thought is just now seeping into the minds of the Obama team of economists and dimwits, and the

average perma-bull institutional investor will soon get the message too. The 'new' average unemployment willbe 8% to 9% for many years and GDP growth will barely keep pace with population growth but not with thecompounding of interest on the national debt. The average P.E. will drop from 14-18 to 8-12 over the comingyears and that's a stock market half of current levels in a recovering economic period. The only question seemsto be if this realization shock will come suddenly in a crash and panic when Greece goes under, or will it be anendless drift where the masses never wake up until the bottom and are then told it's too late to sell.

California is bankrupt and we can all guess how many months they can give out I.O.U's instead of checksbefore there is rioting in the streets, and only a week or two later the huge state pension funds will wake up tothe fact that they are so underfunded that any further loss in the stock market will be unacceptable and they rushfor the exits. Most of the really big institutional money in the market is scared and can't afford to face a board ofdirectors with another 20% to 30% down year. The slightest hint of a major correction could cause a stampede.

STOCK CYCLES FORECAST

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The chart above is the Vedic master cycle of 120 years and it also ties in with all our 10 year decennialpatterns and was shown in a past issue. The recent 'deadness' of the market seems similar and the bulls are allexpecting 1200 and the bears 800 or 600, so why not please them both and chop them up at the same time? The'theoretical' cycles all peak by early March and go down all year and yet there are some individual bullish cyclesthat fall after this period, the last one at the end of May. The biggest disaster in our lifetimes from a cyclic pointof view is scheduled to hit from June to September and that's where fortunes will be made, but mostly lost. Thetricky part is if this sudden up surge pattern hits first to squeeze the shorts. I have to see it to believe it but mystrategy will be to scalp long above 1112 and be short below 1090.

While I don't favor the bullish outcomes I do like to present a 'fair and balanced' newsletter and the above'Foldback' method does indeed still have the potential for a 1200 to 1275 spike should economic good newssurprise everyone. The month of March is the key with expected 'green shoots' and positive employment figuresas well as the quadruple witch expiration which in the year 2000 led to the biggest short squeeze in history.Combine that with my long standing Tan 30 deg dates of March 25th and April 8th and it could make a lot ofsense if the recent low turns out to be a spring board to a big culminating top. Of course the 1980 pattern has anongoing panic straight down until April 8th, so go with the flow. Strategy is very simple so don't fight the tape.Be short below 1090 S&P and be long above 1112 S&P.

Below is the 60 minute chart of the S&P proxy, the SPY. It shows the declining 90 degree angle off the top

which usually defines a correction trend and it is at the point it can go either way. The repeat 'fractal' patternfrom last November and December would show a choppy March with a culmination spike into early April,basically following a 90 day cycle like we just saw at the Jan 14th top. The alternative is a foldback back downonce we break 1080 S&P.

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The REAL QUESTION to be answered is of course whether the 'crash of '08-09' was the firstleg downand the recent rally to the 50% retracement level will now result in a second leg down to new lows, OR was thathuge decline a final culmination of the rolling top starting in the year 2000 and culminating 9 years later. Thisweekly chart above looks to be following a fractal pattern from the October 2007 top with another big leg just

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ahead. If it is not a repeat fractal they could go up and keep going. Strategy is pretty simple...be long a risingmarket above 1112 and short below 1090.

Are The Mayans Short The Market For 2012?The precession of the equinoxes is the movement of the spinning earth which completes a full circle in

about 26,000 years when the line up of the earth and our sun go thru the galactic center axis of our Milky WayGalaxy. It's like a spinning top where the top of the top describes a circle as it wobbles and this wobble spin ofthe Earth takes from 21,600 to 26,000 years to complete depending on what type of coordinate system you arelooking at. The intellectual ideal for a 'created' universe would be one arc minute per year (60 minutes to a

degree, 360 to a circle, or 60 x 360 = 21,600 years, but the observed present rate of speed is about 50.3 arcseconds (60 seconds to a minute) or (60 x 60 x 360) /50.3 = 25,765 years. We don't really know if this 50.3 arcsecond present movement varies in speed over 26,000 years so we can only guess. In any event it's a long time.The Mayan calendar has symbols which indicate the 'end of the world' on December 21, 2012 and this coincidesexactly with the sun lining up with the axis plane of our Galaxy for the first time in this nearly 26,000 yearcycle. When this line up occurs the plane of our sun and earth will line up with the plane of the galaxy and theremay be huge electromagnetic disturbances. My personal opinion is that this will be the 'flip' of the north andsouth poles of the earth which we know historically takes place from 10,000 to 100,000 year intervals becausewe can see catastrophic evidence in lava flow particles changing north south orientations virtually overnight, aswell as microscopic dead animals in stream sediment blocks which have magnetic particles in their bodies andthey are lined up in opposite north south directions during these regularly recurring catastrophic times. Now the

earth is a spinning top with a core of molten metal and as it rotates it creates an electromagnetic field around theearth and this is what keeps us alive as these magnetic fields create the Van Allen Belts which trap and blockcosmic rays from reaching the earth and killing us all with a really bad microwave sun burn. It is my opinionthat the so called 'climate change' is nothing more than this prelude to the earth's north / south pole flip andthere is evidence that the north pole magnetic field is now diminishing while the south pole field is strongerthan ever recorded. This is causing wild extremes in the weather and the only relevant question is if this iscorrect and the poles are about to shift, will the entire planet flip and we all drown as the oceans cover us ( i.e.Noah's Ark), or will just the electromagnetic field flip in an instant giving us a really bad storm and not actuallychanging the orientation of the earth itself. In any event we are starting to see major earthquakes and 'storms ofthe century' so we may see harmonic footprints of the coming event in the stock market patterns. The likely last'harmonic' is one degree back and at 50.3 seconds this is about 71.6 years but 71 or 72 years is a close fit. That

would be 1938 or 1939.The first chart on the next page is the 1939 pattern and it shows a March low the prior year and a March

high in the current year with a big 'crash' into my April 8th date. There is then another rally back towards thetop area but this is all within the framework of a declining market for another two years to new lows. In thispattern the most danger for the year is over the next 90 days.

The chart below the 1939 one is the same chart flipped upside down to show our current rising marketpattern with the harmonic of 72 years back (1938) which had a March crash low instead of a one year rally likeour current situation so I had to invert the chart to show this pattern. It's a bit hard to read but the big high on theleft side of the chart following the large one year rally shows where we would be in time on this 72 yearharmonic. This pattern shows a final high in March 2010 and a decline lasting the rest of the year but notactually taking out last year's low. This pattern also is interesting in that it looks like a sudden spike high to a

new high in the month of March just before it all collapses (perhaps the Working Group will work when Greecegoes under).

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The pattern on this above inverted chart shows a last spike short squeeze fitting the pattern from 1890 onthe first page and also the year 2000 big March spike. It may not come but if we go sideways without moredownside for another week they could squeeze the quadruple witch expiration where the S&P futures may be allshort. Of course ALL these patterns are suckers bets because they all collapse and go down all year so youreally need to just watch for the 'unexpected' bad economic news releases each week.

we would be here

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I brought up these charts from 1938-39 because they are a 1 degree harmonic of the Mayan prophecy forthe winter solstice of 2012. It's debatable if this Prophecy even exists so we need to test it. Legitimate cyclescast their shadows both before and after the event. My first '15 minutes of fame' occurred in 1987 when Icorrectly forecasted both the day of the 1987 top and the day of the 1987 crash low. I could do this because Inoted a Fibonacci series of numbers that were counting down to a 'zero' point that must be important and then Iresearched the cycle and found its cause. If we count backwards from December 21, 2012 to see if a potentialcountdown series exists we see the following:

These are weekly Fibonacci cycleswith the August 27th one being week 121, and the close March 19thone, 144. Since the March 19th one coincides with the options expiration it will perhaps reinforce the cycle and

that could be a huge short squeeze or collapse. From the looks of these past rhythms it does appear that the year2012 will be eventful.

The US Dollarisimportant this year andany 'panic' will certainlyshow up in Dollardemand, and a recovery,in its weakness. This chartof the Dollar Index shows

a very strong up trend butat a point where a two orthree week consolidationor decline could be seen.This chart usually movesopposite to the S&P.

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Goldman Sachswas an early leaderbut topped way back in September.Earnings will be under a lot of pressure fornumerous reasons, and governmentinvestigations into their trading practicesand involvement in Greece debt swapscould cause real problems. While the chartcould be making a foldback with a low here

and a run back to $200, it's a 50/50 bet itgoes to $130 then $100 again. Stay shortonly under $162.

Home Depotis breaking out on anaggressive pattern that is going 'vertical' ina parabolic so it will be a major leadershipname or it will top and reverse verysuddenly and collapse. Clearly it's a bet

that the economy is recovering so whenthey reverse on this one you know theywill give up on the market rally.

Oraclehas been steadily rising all yearand is one of the few stocks that hasexceeded the tops of 2007 and 2008 provingthat it is still in a long term bull market. If it

has a 10 year cycle from 2000 it could stillbe strong for another six months or more.It's a buy above $23.

Below are listed cyclic turns onindividual stocks indicated for the comingtime period. These turns have beengenerated from a computer program I giveout in my personal seminars and is usuallyquite accurate.

The following stocks have tradable cycle turns during this coming time period:

GE3/01

KO3/01

MSFT3/01

UIS3/01

HGSI3/01

LVS3/02

TNH3/02

PG3/02

SNDA3/03

ISRG3/03

WDC3/03

DNDN3/03

GS3/04

JNJ3/05

UTX3/05

COST3/05

TRV3/05

MRK3/05

WFC3/08

IBM3/08

SOHU3/08

CSCO3/08

HD3/08

DD3/09

GNK3/10

AMD3/11

FSLR3/11

GOOG3/11

TXN3/11

AXP3/11

VZ3/12

F3/15

AAPL3/15

WMT3/15

HAL3/15

WYNN3/16

AMZN3/17

ISRG3/17

NFLX3/17

RIG3/17

MCD3/17

MSFT3/17

MMM3/19

VZ3/19

HGSI3/19

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March Activity CalendarDATE UP /DOWN

DAYDAILY WEEKLY HOURLY

1 D * * 12

2 D 10

3 D 3

4 U * 4

5 U 10

8 D 129 U 12

10 U * * 12

11 D 11

12 U 10

15 U * 10

16 D 1

17 U 12

18 D 2

19 U * * 3Notes: U means up day, D means down day. Trend changes indicated by the * will generally be more accurate

than the frequent U/D day indications and will usually trend in the same direction until the next *. Hourly turnsare given in local New York City (Eastern) times, i.e.10=10 AM EST.

SummaryMarch is the big pivotal month this year with BIG turns near the 19th and

25th. The 10 year cycle had a huge short squeeze straight up, but the 30year cycle goes straight down so use 1080 as a pivot. Upside targets are1115, 1150, 1175 and 1200, while down side is 1025, 990, and 850. Theearly part of the month looks very choppy with a lot of alternating swings.My new trading system the Michael S. Jenkins Secret AngleMethod is selling great and you can check the website formore information on this great discovery of mine. This is the

method I used to predict the March 6th low from theOctober '07 top in my daily email service.Also for $20 US, or $30 Non US, you can order my MTAvideo presentation and slides..it's the best buy of your life!!!

Stock Cycles Forecast voicemail telephone number is (212) 866-2934, but I rarely answer phone messages.To get a quick response it is better to use email at: [email protected], or [email protected] me know if you can get email delivery of the newsletter as it is at least two to three days faster than regularmail. Stock Cycles Forecastis published approximately every three weeks. Annual subscriptions to the newsletter including thenightly telephone update are $500, a six month subscription is $265. One-year subscriptions without the telephone service are $300,and a two-issue trial is $50. Mr. Jenkins books and course:The Geometry Of Stock Market Profits ($50), Chart Reading ForProfessional Traders ($75), The Secret Science ofthe Stock Market ($135), Basic Day Trading Techniques ($125)as well as The

Michael S. Jenkins Complete Stock Market Trading and Forecasting Course ($529 US $550 Foreign), and Secret Angle Method

($500) are available for purchase by check mailed to: Stock Cycles Forecast, P.O.Box 652, New York, N.Y. 10025-9998. PayPalis also accepted on the web (www.paypal.com) by 'sending money' to [email protected]. The information and statistics aswell as the original theoretical concepts utilized in this report are presented solely on the basis of the writers interpretation of such factors and may not reflect specificknowledge or fundamental analysis of any of the companies mentioned. Any opinions expressed are subject to change without notice. Neither the information nor anyopinion-expressed herein constitutes a representation or solicitation for the purchase or sale of any security. From time to time the publisher, his associates or membersof his family may have a position in the securities mentioned in this report.

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