Financial Armageddon - Conspiracy Theory or Visionary?
Is a Global Economic Collapse Coming, followed by World War 3?
Let’s look at the facts….
The European Union is in economic shambles.
European banks Credit Suisse, Deutsche Bank, HSBC, Barclays Bank, the Italian Banks, German Banks, French Banks, Spanish Banks are all on the verge of bankruptcy.
American banks are heavily invested in European derivatives and all global banks are interconnected. If one fails, they all fail.
The U.S. stock market has been overinflated into a huge credit bubble by central bank easing or money printing.
The US Government is over $20 Trillion in debt and will never be able to pay it back.
Gold and Silver have bottomed and are now in a Bull market.
US Bond yields are at all-time lows around 2% and falling. Pension funds and insurance companies are in trouble because they cannot earn enough yield to maintain their funds.
The COMEX and LBMA are out of physical gold and a default could occur at any time.
There is nothing left now to keep the financial markets from crumbling other than interventions.
When you have a (PPT) Plunge Protection Team of the US Treasury purposefully buying equity’s in order to make the markets look better to the ignorant public; then we’ve completely lost any relationship in this country to a free market system or capitalism.
The stock market no longer represents the state of the economy because it’s all fabricated, just like the employment numbers. They are all a complete lie, a fraud, pure propaganda, extreme government manipulation.
The recent surge in the stock market is NOT due to renewed confidence in the economy, but the fabricated appearance of confidence derived from US Treasury interventions.
We have the sixth quarterly decline in earnings as we soar to record high stock prices.
The REAL unemployment rate is around 23%
Money Velocity is at all-time lows.
Baltic Dry Index is at all-time lows and falling.
There are countless financial experts predicting a collapse of the global monetary system and it all seems to center on a global banking crisis started by either Deutsche Bank or the failure of the Italian Banks in Europe.
Once one of these dominos falls, they will take down the entire system.
Gold is doing exactly what we expect it to do in an up-trending bull market. Each down leg has met support at the trend line and immediately bounced back up to newer highs and that trend continues now as gold makes its way to a new upswing to higher highs.
I expect August could be the month that gold breaks 1400 as we have options expiry in the futures market next week, allowing price to freely gain momentum again in August.
Stock Market: (SPY) (QQQ)
It looks like we may have had a break in the artificial up-trend of the DOW on Thursday. Considering that this is an artificially inflated push created by the US Treasury, this break may only be temporary, but we are definitely due for a correction in the stock market as noted by the extreme overbought conditions of the stochastic oscillator in the chart below.
Energy Stocks: (XLE) (UNG) (USO) (LNG)
Crude oil continues its decline into the next cycle low. We may have a temporary bounce around the 43 handle as it meets support and then again around 35.
If you plan on shorting oil, you might want to wait until after it breaks the 43 support level.
Commodities: (FCX) (JJG) (DBA) (JO)
I was wrong about the rebound in DBA this week. Although we had a temporary bounce out of the demand zone (rectangular area), it wasn’t strong enough to launch into another cycle up. The next support level is around 20, so we should get a bounce and possible bottom at that level. We’ll just have to wait and see.
The key to a bull market in commodities will be when the US Dollar begins to lose value. As the dollar cycles down, commodities will rise inversely to the dollar.
(SLW) January 2017 CALLS
(GDX) January 2017 CALLS
(ABX) January 2017 CALLS
(FNV) January 2017 CALLS
(RGLD) January 2017 CALLS
(DBA) January 2017 CALLS
(JJG) January 2017 CALLS
(SPY) December 2016 PUTS
(IYF) August 2016 PUTS
'Elevator Down' Looms As Market Reaches 3-Standard Deviation Extreme
Only 28 stocks in the S&P 500 (less than 6 percent of the index) are at new highs. Less than 72 percent of the stocks in the S&P 500 are even in uptrends.
A Failed Coup, An Unrecognized Republic, And Triggers For A Global Economic Meltdown
Turkey is at the center of the European migrant crisis, the ongoing carnage in Iraq and Syria, the conflict with ISIS, and the new Cold War with Russia. It’s hard to think of another place that has more tripwires for a global meltdown. And in this coming crisis America is likely to be ground zero.