Went up on the mountain, To see what I could see, The whole world was fallin', right down in front of me.
Markets Falling, War Brewing, Change is Coming
Markets are falling everywhere. Global trade is at a standstill. World War 3 is brewing and political change is on the horizon. I don’t like to talk about politics within these pages, but the criminal cabal that controls our puppet government, that is, the one world government elites, will stop at nothing to maintain their power and Donald Trump stands in their way.
If he makes the nomination, I wouldn’t be surprised if he has an ‘accident’ before he can ever engage as president. Strange events are happening in the world and right here in our own country. The people of this country are waking up to the manipulations of our puppet government and the crony capitalists that control them, that’s why Trump has gained so much momentum.
Our economy is crumbling along with the rest of the world’s economies and the final result is frightening. The ignorant and misled masses are beginning to catch on, however slowly, and political change may be forced on the ‘Establishment’, which Bill Bennett calls ‘the socialist cabal and the corrupt crony capitalists’.
If Trump does have an ‘accident’ before taking office or during his term, I believe this country could erupt into revolution. The tension has been building for years and people are just not going to take it anymore. One day it’s going to boil over and we are getting closer every day.
When this economy implodes, and that’s not too far away, take cover, because things are going to go completely out-of-control.
The Fed Marches On
Next Wednesday on March 16th, the FOMC is meeting to consider whether to raise rates another .25 basis points. If they do, this will blindside the stock market and cause the current downtrend to implode further to lower lows.
Investors are convinced the Fed will not raise rates this March due to the horrible economic indicators, but the Fed see’s things from a different perspective, a perspective derived from fantasy, fraud and lies. I believe they will raise rates and trigger another crash in the markets.
No one thought they should raise rates last year, but they did. No one believes they will raise rates this month, but I think they will. Even if they don’t, the trend has already been set into motion and the bear market is in full play.
If you are positioned correctly by shorting stocks and going long gold and silver, you will join the small minority who will be on the winning side of the greatest transfer of wealth in history.
I know that many of you feel gold is currently over bought and are expecting a correction, but my thought is that the current consolidation under 1270 is the correction.
The commercial short positions are doing everything in their power to cause a significant correction in gold, but so far, all those efforts have been thwarted by a new surge of investor longs. The price of gold has been suppressed for so long that I think it’s finally beginning to snap back to the mean and will only pick up steam from here.
As a result, I think the price suppression scheme could break any day and when it does, you’ll want to have positions in place because things will happen so quickly it will be hard to get a position when it takes off.
The physical price is beginning to take control over the paper derivatives price and another catalyst for gold skyrocketing will be the SGE (Shanghai Gold Exchange) going online in April. This exchange will trade physical metal only and I expect most traders will want to know they are guaranteed physical delivery when desired and convert to the SGE in the future. This will bring about true price discovery for the physical market and implode the paper markets of the Comex and LBMA.
I expect the FOMC meeting next week to be the catalyst that triggers gold to pop above current resistance and lead to new highs.
Stock Market: (SPY) (QQQ)
The recent short squeeze in the stock market has caused a rally back to the 61.8% Fibonacci level this week, as predicted, and it is now prime for a retrace back to new lows. Expect the next low to surpass the previous February low. This should also have a positive effect on the price of Gold in the coming weeks. The FOMC meeting next Wednesday should trigger the downtrend, but we will just have to see.
If you haven’t already shorted the S&P, now would be a good time to hold 2017 PUTS in (SPY) or the much cheaper (IYF).
Energy Stocks: (XLE) (UNG) (USO) (LNG)
Since oil has broken the down trend line, many analysts believe that oil has bottomed and we should see a rebound from here. I’m still not convinced, the fundamentals don’t support the rebound, but the technical pattern does support a short term rebound. Once the stochastic oscillator gets a little closer to the 80 mark, we could see a retrace back down. Oil will probably reach a target of around $40 before losing momentum.
This could be a decent short term play, but there is not a lot of room left before I think it tops out and heads back down again.
Financial Stocks: (XLF) (IYF)
If you are watching the S&P or the DOW, you are pretty much following the exact pattern of the financial stocks. I think the upward trend is losing steam and will soon retrace back down to new lows.
Commodities: (FCX) (JJG) (DBA)
Just like the chart of oil, we have seen a break of the down trend line in commodities and I expect a short term rise until the fundamentals catch up. Once oil peaks and starts to drop back down, commodities will follow suit.
US Treasury Bonds: (TLT)
Treasuries have been a mirror image of the stock market and have dropped down while the stock market rises. I expect a turnaround soon.
(SLW) January 2017 CALLS
(GDX) January 2017 CALLS
(ABX) January 2017 CALLS
(FNV) January 2017 CALLS
(RGLD) January 2017 CALLS
(SPY) December 2016 PUTS
(IYF) August 2016 PUTS
"There's An Insurrection Coming... The American People Are Sick & Tired Of Crony Capitalism"