I’ve been told by an insider that something big is about to happen behind the scenes which will affect the markets over the next 14 days. (November 12-25) This source is globally connected and he’s being very cryptic about what’s about to unfold, but he says that over the next 14 days, stocks, bonds and the US dollar are going to implode and the price of PM’s is going to skyrocket, slowly at first and then ‘go ballistic’ (his words) in the final 3 days.
I’m a technical analyst and so is he; however, he’s saying the charts have nothing to do with his prediction and in fact, he says the charts do not show any clue about what he’s talking about. We will have to see if his information plays out, we obviously don’t have long to wait.
In either case, now is a good time from a technical standpoint to be positioned long in PM’s and short in stocks, as I will show you below. If you are already positioned, you should expect some gains over the next couple of weeks. If you are not positioned, you still have time, but time is running short.
In the chart above, we’ve had a steep decline in the price of Gold. This is a manipulated push down by the bullion banks using the paper futures market. Price has reached support and I don’t think gold will breach the support line.
If you look at the MACD below the chart, you can see that Gold is already extremely oversold and typically when you have a waterfall decline like we’ve seen in the last several days, the bounce off of support tends to be just as violent a move to the upside.
The technical conditions show a reversal is coming soon, so now is the time to be long gold stocks, at least for now. I would buy March 2016 Call options slightly out of the money.
When gold moves, you tend to have a shadow move in the gold miners as well. GDX crashed the Bollinger bands a few days ago and is now building up energy to swing back to the upside.
Stock Market Indices: (SPY) (QQQ)
As I mentioned last week, the stock market has rolled over, broken the up-cycle trend line and is now crashing back down towards lower support. (Dashed line) There is a good chance that this downtrend could pick up steam and break lower support to confirm the bear market.
In the weekly chart of the S&P below, you can clearly see where the price broke the up-trend line and then after the August crash, bounced back up to touch the trend line, which now becomes resistance, before retracing back down again. This is a classic technical pattern during the beginning of a bear market. I think this bear market is going to get ugly very quickly.
Energy Stocks: (XLE) (UNG) (USO) (LNG)
Well, last week I told you I was going to wait for oil to break support and as you can see in the chart below, oil has broken through the lower support line and is now headed down to at least $38, but I think it’s going down much further.
The demand for oil has fallen off the charts and China has run out of places to store it. In fact, you may not be aware of this, but there are miles of FULL oil tankers just sitting in the Gulf of Mexico off the coast of Galveston, TX because they have nowhere to put the oil. All of the oil reserves are full.
This should have a devastating effect on the cost of crude in the coming weeks.
Natural Gas continues to move up slowly, but we still have the entire winter months ahead of us. If you bought Spring 2016 Call options, just sit back and enjoy the ride. Nothing to do now but wait for winter.
Financial Stocks: (XLF) (IYF)
I’m watching the stock market closely before I short any financial stocks. If Deutsche Bank is any clue as to what’s happening in the financial sector, and I think it is, we should expect all hell to break loose over the next several months.
Biotech: (BIB) (KITE) (IBB)
I don’t short biotech stock and with this flaky market, I’m staying out of biotech for now.
Commodities: (FCX) (JJG) (DBA)
Commodities are setting up for a big run up once investors realize the stock market has topped.
US Treasury Bonds: (TLT)
US Treasuries are making a comeback now that the stock market is starting to tank.
US Economy at its Breaking Point?
I believe we are on the cusp of a major collapse of the global economy and the posturing of the US government, Fed and mainstream media seems to confirm my theory. The blissful uninformed populace of this country uses the stock market and the mainstream media as their barometer of the economy.
This economy is hanging by a thread, yet the lies and manipulation of the facts coming from the US government blows my mind. The latest manufactured unemployment numbers that came out last week are a prime example.
With the blatant manipulation of the Gold futures market, the stock market, currency markets and the saber rattling by the US war mongers trying to start World War III with Russia and China, I believe this is preparation for the collapse of our once great nation.
The following excerpt below comes from a King World News interview with Eric Von Greyerz.
Eric Von Greyerz, Founder of Matterhorn Asset Management
“…stock market investors are blissfully unaware of what is going to hit them.”
World trade is collapsing.
Virtually all indicators for commerce between countries are now showing a substantial contraction. The Baltic Dry Goods Index is at its lowest level in history. The China Container Freight Index is down 50 percent since its 2011 peak. Chinese exports fell for the fourth month in a row in October, down 7 percent. And Long Beach empty containers are at the highest level since 2006. Freight on U.S. railroads has seen the biggest fall since 2009. And U.S. truck loads are down 60 percent since 2014.
All these statistics are indicators of real economic activity. This is very different from manipulated official statistics like U.S. unemployment, which shows a false improvement, overlooking the 94 million people who have no job; and that for the up-to-55-year-olds, 119,000 jobs were lost and the only jobs gained were for the over-55 or fabricated jobs (145,000) based on a theoretical model assuming eternal job expansion.
US Gold Reserves Empty?
In addition to the above, I believe the US Gold reserves are non-existent. I think all the gold has been sold to China and other eastern bloc countries or hypothecated (sold or leased multiple times) to bullion banks around the globe.
The COMEX has less than 5 tons of registered gold left for delivery come this December. December is typically the largest delivery month of the year and the COMEX has nearly 300 paper contracts for every deliverable ounce of gold. This is the largest ratio of paper contracts to physical ounces held in COMEX history. 5 tons is nothing. Heck China has been publicly buying at least 200 tons per month lately. All they would have to do is ask for delivery of the remaining gold in the COMEX to stop the US manipulation and crash the US economy. Re-pricing gold much higher would greatly benefit China because they hold all the Gold. It’s estimated that they hold over 12,000 tons and some estimates are as high as over 20,000 tons. China’s official gold holdings of only 1,700 tons are bogus and nothing but a charade.
Read the excerpt below from Bill Holter financial writer for JSMineset:
“The weak U.S. and global economy is fact, the ability to raise interest rates I believe is fiction. Interestingly, we are heading into December which each year is THE largest delivery month for COMEX gold. We are entering this timeframe with a registered gold inventory lower than any time in memory. Less than $200 million can now clean out ALL registered gold stocks (inventory) on COMEX. This, at a time the U.S. has pushed both Russia and China very hard. As I have maintained for months now, do not be surprised if a “truth bomb” is dropped on the American population. This may be the only way a war can be avoided, show the American people the truth and take any public support for aggression away. Reveal the truth and our markets will be crippled. Cripple our markets and the ability to make war will largely be neutered. I believe we are very close to a point in time where the bleak reality can no longer be hidden and the attempts to hide it will become desperate. Truth will reveal an entirely different world than what many believe we are in! “
If you pull a rubber band apart far enough, eventually it will snap. Well I believe we are at the snapping point between market manipulation and the natural forces of a free market economy. It’s going to happen, the question is when. Whenever it snaps, you’re going to witness one of the largest global economic implosions in recorded history.
Who knows, maybe it begins within the next 14 days, maybe before the end of 2015, maybe not until next year, but it’s going to happen. Personally, I believe it’s already started and will only get worse from here. The average Joe has no idea its coming and doesn’t understand economics enough to see it or prepare for it.
I grieve for my lost country and I worry for my family and friends, who have no idea what’s about to hit them.
Live long and prosper.
Huge Fraud at COMEX Covering Up Huge Demand for Gold-Craig Hemke
Financial expert Craig Hemke says not only is the 300 to 1 leverage at COMEX “extreme fraud,” but it also is a sign of record demand for physical gold. (Must watch video.)
Was the Trident Missile Launch a Precursor to WW III or Civil War?
The events in California are bizarre, very bizarre. We are seeing wide swaths of airspace being closed to the public. We are also seeing the launch of a Trident missile without an adequate explanation being given to the public.