I base that claim on what at least one of my readers has done using my trading analysis and reports as a platform for his trades. I can’t guarantee you’ll be able to do exactly the same. But his results show you why I think the next twelve months could be incredibly lucrative for you. I’ll show you what I mean shortly.

What about the risks? Well, let’s be clear: they’re very real.

If you miss this wave you’ll get swamped. You could suffer large losses from the down-move I’m expecting. What’s more, you’ll be unable to capitalise on the huge rebound I plan to trade when it comes.

How do I know a big break in the market is coming?

Look at Bells Beach, pictured in the chart above. It’s world famous for its Point Break.

A point break is just one kind of surf. In this case, it’s the current from the Southern Ocean hitting a point of land that juts out in the water. But the quality of surf is determined by a lot of things.

Underwater topography, for instance, matters a lot. As the waves rush into the coastline, the seabed underneath determines how big and burly the waves will be. Coral reefs or other underwater features can make the waves even steeper. They can also make crashing more dangerous.

Bells Beach is famous for some of the best right-breaking peaks in the world.

But each year hundreds of surfers are rescued from the waves — mostly tourists.

However, I’m not writing to you today to give you a lesson on surfing history.

I’m writing to show you that there’s an unseen topography to the price action of the stock market. This unseen topography determines price action in the same way that the topography of the sea floor determines how a wave breaks.

Here’s the important part:

My technical analysis tells me that the 4,200 point on the ASX 200 could be a decisive turning point in 2012. In fact it could be the biggest market turning point since 1987.

I call this important price level ‘The Point of Control’. In my own theory of price action, this point is critical to future price movements.

Not in months.

In weeks. Or even days.

I can tell you that with complete confidence because when you look at the market in chart form over the long-term, you can see it has been following a strict script for five years now.

And if you look at recent movements, overlapped with fundamental data coming out of the main financial centres, it’s obvious to me we are entering the final stage of a major move in the share market.

This is a stage where a few smart trades could make you an incredible amount of money.

That’s the good news.

The bad news is that while I’m certain this breakout WILL happen, I can’t say exactly when it will happen.

And if you mistime this trade you’ll be dashed on the rocks and ground into shark bait. Or get pounded to dust, like the Manly baths in 1974.

I say that because my technical analysis shows that this move will only happen AFTER a massive move DOWN in the markets. A move that will shock people with its viciousness. I’m talking about a 1,000 point fall in the ASX happening over a period of a few days or weeks. A massive crash.

Take a look at this…

What you’re looking at here is the ‘unseen topography’ of the current market. It’s the underlying pattern — a pattern most traders don’t see, or ignore — that determines how the wider market moves.

Take a look and you’ll see two solid blue lines between 4,075 and 4,325.

That is the ‘distribution’ that the ASX 200 has traded in for several years now.

Now between those lines…exactly between…sits the Point of Control at 4,200.

That’s the gravitational point around which all of the subsequent price action oscillates. Think of the market as a tide. You’ve got high tide, and low tide. The Point of Control is the point in between.

Now here’s the thing…

If the market sells off below the Point of Control…and DOESN’T break back to the 4,200 level…that’s when a huge momentum shift occurs.

People who are ‘long and wrong’ (buyers who bought at high prices) from the top half of the distribution will start to dump positions, giving the bears the upper hand to sell aggressively.

That’s when MASSIVE big sell-off begins.

Look at the chart. You can see that the ASX 200 has remained BELOW the Point of Control since May 15. Every attempt to break back to 4,200 has failed. Every trading second the index stays below 4,200 is a second closer to a 1987, 2008-style global crash.

Now that might sound scary. It IS scary. But it’s also exciting.

I’m almost certain you’ll see the market retesting last year’s lows at 3,765.

And then, afterwards, you’re looking at something I’ve called ‘Big Wednesday’.

NOT because I think it’s going to happen on a Wednesday, although it might.

The point is…

I’m convinced that after the panic-selling subsides you could see the biggest market up-move in 30 years. This is the sequence of events I’m preparing to trade. First the crash. Then the rally.

The purpose of this report is to show you how to trade both.

Why should you listen to me?

Well, I’ve spent practically every trading day since late 2009 in front of the screens and working out ways for private investors just like you to surf this unprecedented market for profits.

Jo-Anne Martin writes:

John Shaw emailed to say:

Sibella Herbert writes:

Believe it or not, the trading climate is about to get even more treacherous.

The conditions in the market are a lot like they were in 2008. I surfed another trade at that time to epic paper profits of half a million dollars. A small mistake saw me eat it big time and cost me the lot. I don’t plan on making the same mistake again.

In fact, I’ve put a critical safety measure in place to ensure it DOESN’T happen. It’s part of my risk management technique, which I’ll discuss more shortly. But first…