There is so much happening in the World that it’s hard to keep up with all the news stories. Virtually every economic indicator is screaming that the economy is in free fall. I’m not going to list them in this report, but things are not looking good. The Fed is the only thing holding up the stock market right now and I think come December 16, they have no choice but to trigger the next stock market collapse.
That’s when they decide whether or not to raise interest rates. If they raise rates, which are expected, it will crash the markets. I once wrote that they won’t raise rates, for this very reason, but I think the Fed has no choice but to raise rates now to maintain any credibility. They keep telling us ‘the economy is great, nothing to worry about; in fact things are so good we’re going to raise rates.’
Talk about ‘wagging the dog’ !
According to many analysts, the Fed has backed themselves into a corner. If they don’t raise rates, they lose credibility and cause a sell off. If they do raise rates and follow through with their statements, it will cause the markets to sell off.
All the big players are selling; the only ones left in the market are the retail investors, mom and pop, who don’t have a clue what’s going on behind the scenes.
The hedge fund managers have been unloading their stocks into every rally, because they know the market has topped and there’s nowhere else to go from here but down.
I think we are on the precipice of a breakdown of the system. The U.S. is the most bankrupt country of them all and the only reason we can continue the way we have is because the dollar is the reserve currency and we are allowed to print money to pay our way.
Wouldn’t it be nice to be able to print money anytime you wanted it? What other country in the world is able to do that without critically devaluing their currency? None!
A Time for War
By the way, have you noticed how things are ramping up in the war with Russia and in the Middle East? I think the Russian plane that was shot down by Turkey was a NATO decision. Turkey is a NATO country and they wouldn’t have crossed that line without permission from the source who sold them the F-16’s that shot down the Russian bomber.
We now have confirmation and evidence from the Chief of the Russian Air Force exactly what happened with the downing of the Su24 fighter. The evidence confirms that the aircraft was over Syrian soil and they believe intelligence and a ‘Nod’ were provided to Turkey from the U.S.
If true, this would be considered an act of war. Putin issued a warning to Obama and placed SAM 400 (Surface to Air Missiles) into Syria. These missiles have a 250 mile range creating a no fly zone.
Things are escalating and I think by design. The U.S. knows that the system is broken and may collapse at any time. I think they want to start a war to blame the collapse on anything other than their stupid policy decisions. A war would focus the public’s attention on something besides the failing economy and they could say ‘everything was fine until we had to go to war.’
American lives are going to be lost and we are taunting the most powerful military superpower on that side of the pond. What kind if idiots do we have running this country and for what?
Be alert, pay attention. The next few months should be very interesting.
Last Friday, the day after Thanksgiving and in a very illiquid market, 18,000 futures contracts, representing about $2 billion, were sold on the COMEX in early morning, premarket hours.
On Monday November 30, the Chinese Yuan earns inclusion into the IMF’s SDR bundle of currencies and on Tuesday it is options expiration in the precious metal futures market.
There is great fear among the central banks. Things are spinning out of control and there’s nothing they can do about it. I believe these manipulations are last ditch efforts to control the implosion of the system.
We should see an explosion to the upside any day now. Usually when you see such a steep waterfall decline like we’ve had in the gold and silver markets, the bounce back becomes just as strong and you get a deep ‘V’ rebound.
Be patient, it’s coming.
The US Dollar has made a double top and is now expected to reverse back down. This will allow Gold to bounce back from its lows. The commercial banks are currently long Gold and short the dollar. This is always a signal that a trend change is coming.
Stock Market Indices: (SPY) (QQQ)
The stock market peaked in May and has since had lower highs (see arrows). We are due for a retrace down from here. I think it begins in December and follows through into next year.
Energy Stocks: (XLE) (UNG) (USO) (LNG)
Crude should continue downward trend due to the overcapacity problems. The only reason we had an uptick last week was due to the knee jerk reaction to the plane over Syria being shot down. Of course, a war would save oil from a huge decline. Let’s see what the elites plan on creating from this point forward.
Winter is just beginning and our first snow storm was seen last week. As things cool down over the next couple of months, Natural Gas should inch back up to normal levels.
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 stocks 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)
The bond markets are enjoying the temporary bump from the war mongers. I believe this is temporary and we should see a retrace in the coming weeks.
If The Fed So Much As Blinks, The Stock Market Will Collapse
The truth is, the markets are so disconnected from the underlying fundamentals that if the Fed were to pause for just a brief moment from its continuous market intervention, the stock market – along with the entire financial system – would collapse.
Paul Craig Roberts – Putin And The Russians Crushing The U.S. As The West Destroys Itself
Must read article by Reagan’s former assistant secretary of the US Treasury, Dr. Paul Craig Roberts.
The unintended consequence of this (plane shot down by Turkey) are so positive for Russia that it’s got Washington quaking and Europe wondering about the idiocy of being in NATO.” We brought ISIS in there (to Syria) — everybody knows that. Just the other day the former head the Pentagon’s Defense Intelligence Agency said on television that ‘Yes, we created ISIS and we used them as henchmen to overthrow governments.’