Before I proceed into my trading commentary below, I want to discuss some information that has recently been making rounds in the private trading forums I frequently visit. Whenever anyone posts apocalyptic information about the end of the economy or the imminent crash that is coming, most of the time it gets shrugged off as ‘end of the world porn’.
That being said, I do believe we are heading to a collapse of the global economy unlike anything we have ever seen before. It should trump 1929. The writing is on the wall and all you have to do is watch the numbers like I do and you can clearly see the end as it approaches. It’s not a matter of if, but when. The central banks have managed to hold it off until now, however; I think they are approaching a point of no return and are losing control.
The reason I bring this up now is because I tend to have information from sources that telegraph coming events. Many times these predictions are wrong, at least in timing, and if they miss by a few days or even a few weeks, these predictions are written off as baseless or a witch-hunt; even though they may come true at a later time.
That being said, I usually don’t like to include these predictions in my reports because if they don’t happen as predicted, my readers tend to lose faith. I want to preface what I’m about to reveal, that I didn’t predict this, but I feel that if it’s true, it’s important enough for you to know about it, so you might be able to prepare.
In last week’s report, I told you that an insider I know has knowledge of a major event that is about to take place in the world markets. I won’t reveal his name, but I know he is well connected globally and he’s a multi-millionaire, if not billionaire. He’s not an American, but contributes information on the trading forums I frequent. He’s the type of person who has conversations with heads of state and attends global financial summits.
Last week I told you that he predicted a major turnaround in the price of Gold and Silver, as well as the global stock markets. He indicated that between now and the end of November, there will be fireworks in the markets with precious metals skyrocketing and stock markets imploding.
He says this will not show up in the charts, that it will happen so fast, most people will get caught off guard. As I write this today (Thursday), Gold is already up over 12 points and the markets have just opened.
Based on my own technical analysis, which I explain below in the Sector Trades section, I have positioned myself for a rise in PM’s and a faltering stock market, so if this happens, I am positioned to gain. However, I was not expecting the type of market movement that he is expecting and it still remains to be seen.
Regardless of whether his prediction comes true or not, being positioned as I’ve recommended, will benefit you whether his prediction happens or not. That being said, he says the ‘reset’ begins now, slowly for the next 10 days and then explodes. Let’s examine the facts as he describes them.
1. China’s Yuan has been accepted into the IMF as a Reserve currency and it goes into effect on November 30, 2015.
2. China is expected to back their currency with gold and announce the ‘true’ amount of gold reserves that they hold. Some say its 10,000 tons; others say 20k to 30k tons.
3. Stocks, Bonds and the US Dollar are expected to start imploding before the end of 2015.
4. Gold and Silver are expected to skyrocket to as high as 2,000 and 65-70, respectively by year end.
5. In Chicago, the COMEX is out of Gold and the COMEX and CBOT will have a major disruption and be forced to close down. All part of the reset he’s predicting.
6. ATM machines will cease to function or be limited to a small amount of cash disbursement.
If this comes true, the majority of Americans will be unprepared and all hell will break lose. You can expect rioting, increased crime and desperate people will try to take what you have. You need to prepare by getting some cash out of your accounts for the possibility of a breakdown of the system, buy some physical silver or gold and stock up on food to last a few weeks, if not months.
It’s always better to be safe than sorry, isn’t it? If he’s wrong and nothing happens, what do you have to lose? Just put the cash you are holding back in your bank and move on with your life.
I would at least pay close attention to the markets over the next few weeks to watch for signs of this coming true.
There is a limited amount of gold on earth and demand currently is exceeding supply. So why is the price of gold falling when everyone else is buying? It’s because the price of gold is controlled by the paper futures market where little or no physical gold actually changes hands. It’s all a fraud.
The commercial banking Cartel is forcing the price down against obvious historical demand. How do I know it’s the Cartel? Because no one else is selling gold, rather; the demand in the physical market is off the charts with economies faltering across the globe. Gold is the safe haven asset.
In addition, the amount of shorts required to bring the price down that much is in the $ billions and these manipulations typically happen during the early morning hours right at the open of the London exchange, hours before the US market opens when volume is low.
Technical trading still works in today’s manipulated markets, but you have to factor in the manipulation and try to gauge when the Cartel wants the price to go up.
For the Cartel, it’s just a matter of forcing the price down so they can cover their short positions and then they go long so they can sell at the top and force it back down again. It’s a vicious cycle of manipulation. Once you understand the way the fraud works, it’s a little easier to understand the process.
Look at the COT (Commitment of Traders) chart for gold below. This clearly shows the commercial banks covering their shorts and now going long, while the retail traders are shorting at exhaustion instead of going long. This is what sets the professional traders apart from the amateurs.
The COMEX has very little registered gold left to deliver (5 metric tons) and once they run out, which should be very soon, this manipulation will come to an end and natural price discovery will come back with a vengeance.
When this manipulation ends, the price of gold will skyrocket to unimaginable levels. This is why I suggest, that if you are trading for the long term, you should buy positions in the miners and royalty companies or in physical while the price is suppressed and then hold on for the break of the system.
The daily chart of Gold below shows a descending wedge pattern and you can clearly see the waterfall decline consistent with the rise in the US Dollar. The lower line of the wedge pattern indicates a strong area of support, so if gold moves down any more, that support line should hold and the price should bounce back rather strongly from that point on. In addition, the MACD is at its lowest level in the past two years. This is a strong indication that a reversal is due.
The price of Gold typically runs inverse to the US Dollar. It looks like the dollar has made a double top at the red resistance line and if you look at the MACD, you can see a downward divergence. The US Dollar should retrace back down soon which will trigger the upswing in Gold.
The key to any substantial movement either way will be based on whether the FED raises rates onDecember 16. A rise in rates will strengthen the dollar, however, the economy is tanking and a rising rate will collapse the economy. I think there is a better chance of the FED going to NIRP (Negative Interest Rates) rather than raising rates and if that happens the dollar will crash and gold will move up drastically.
As you can see below in the COT report for the US Dollar, the commercials are now shorting the dollar as they go long on Gold. Notice that the retail traders are long the US Dollar, just as they are short Gold this late in the game. This shows a stark contrast between professional traders vs. amateur retail traders.
Stock Market Indices: (SPY) (QQQ)
The stock market has topped and is rolling over into a bear market. The latest rally is now losing steam with lower highs and soon to be lower lows. This was an empty attempt by the PPT to prop up the markets and now the only investors left are the retail investors and they will be devastated when this thing turns around and implodes. I remain short in the S&P.
Energy Stocks: (XLE) (UNG) (USO) (LNG)
Crude is currently trading in a short channel pattern, but with the buildup of oil reserves and no place to store the excess oil, expect the price to continue to plunge.
Natural Gas continues to trade sideways. We need a cold snap to drive up the demand for Natural Gas and with the entire winter months ahead of us, I’m sure we will get our wish soon enough. 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 dead. Inflation brings life to commodities and right now we are in a deflationary mode.
US Treasury Bonds: (TLT)
US Treasuries are trading sideways, but may have a short term rise ahead. Stay cautious though, bonds could collapse with the markets if we have an economic implosion.
It’s All About Bankster Lies, Propaganda And Desperation
The reality is that the central planners were out in full force with their market interventions in London, selling persistently and using their algorithms to prevent gold and silver from climbing any higher
Recent Market Action Summarized In Four Words: "Institutions Selling, Retail Buying"
Case in point, the smart money which according to Bank of America is taking advantage of this latest rebound in stocks to sell to who else: the traditionally biggest sucker in the room - retail investors.