Ok, so this is a trading report, but I can’t help but talk about the current criminal organization of political insiders that inhabits Washington DC. The reason is because the actions of the criminals in Washington have and/or will have an impact on the global economy which includes our own portfolios and trading positions.
The current state of the over-inflated stock and bond markets is a prime example. We don’t have free markets in this country anymore. All markets are manipulated through any number of ways including massive liquidity injections, the algorithmic trading desk of the PPT, the Exchange Stabilization Fund, the bullion banks and the central banks.
The hubris of this criminal enterprise on both sides of the aisle, known as the Deep State, is pushing our country to the brink of collapse. The frenzied effort of the Deep State to unseat Trump from the White House shows how desperate they are becoming to maintain their power base.
One thing I will say for Trump is that he is exposing the deep seated criminal elements of Washington and if they are successful in ousting Trump, the damage will be done and this country will never recover under the leadership of the Deep State.
The political hysteria in Washington and the extremism of the current market valuations and market manipulations make for very unstable financial conditions. That’s why I have taken a defensive trading posture by holding long term positions in precious metals and mining stocks.
Although I might still trade certain stocks that are still in an uptrend, I’m very careful to maintain rather tight trailing stops or hedge with counter-intuitive option positions.
If you follow my lead, you will be protected and should profit immensely when this false economy finally implodes and everyone else is blindsided. As financial expert Bill Holter states, ‘You could go to sleep rich on Friday and wake up poor on Monday.’
That’s how fast this false economy could reverse course and revert to the mean. Please hold defensive positions, you have everything to lose if you don’t.
We don’t live in a republic. We don’t live in a democratic system. These parties are just part of a large system of organized crime. They exempt themselves from the very laws they hold us accountable to. ~Warren Pollock
Precious Metals Mining Sector (GDX)
(ABX) (NEM) (GG) (FNV) (SLW) (GOEX)
Bitcoin fever is spreading throughout the Eastern Block as worries about the global economies are spreading. It started in China and has now spread to Japan and South Korea where Bitcoin is trading at a huge premium to US markets.
One reason for this surge in Bitcoin is that fear is rising as investors worry about the bond and stock market bubbles as well as currency devaluation in China and the US.
Gold & silver are the normal safe havens in times of economic turmoil, but since gold is being suppressed by the Central Banks to try to maintain some level of control over the dollar’s world reserve status, many investors are turning to Bitcoin and other crypto currencies as a safe haven asset because governments, so far, are not able to control it.
Bitcoin is surging the same way gold and silver would surge, if it weren’t illegally manipulated by the Cartel. When demand for metals finally overpowers the manipulators, and that could be soon, we will see gold and silver skyrocket just like Bitcoin.
“To anybody paying attention, I would suggest that if gold and silver were not strapped down in a straight jacket with the suppressive activities of the central banks and the Exchange Stabilization Fund (ESF) in the United States, they too would have probably ratcheted up 10 to 20 times easily in the last three months because what we are experiencing globally is the rejection of the U.S. dollar.”
“ If we see these crypto currencies continue to vector up, it would imply to me a market crash is very near at hand. For what is coming for the U.S. dollar, having it timed to the day, week or month, isn’t the big issue. The really big issue is what comes after. I do believe there will come a point with the physical precious metals, there is going to come a point, whether you have it or you don’t, and if you don’t, you won’t get any because it won’t be available. I have long said that there will come a day that you will not be able to buy precious metals with U.S. dollars. That day is approaching.” ~Rob Kirby
Then in a blink of an eye, Bitcoin crashes 13% today (Thursday).
ZeroHedge: Bitcoin has plunged 13% in the last few minutes... no catalyst evident for now...
But, in context, it's a fleshwound...
Options expiry started this Thursday on the Comex and ends next week on the LBMA. The next few days should be interesting, as the cartel will do everything in their power to suppress the price of gold and silver.
The commercial banks are holding record short positions and the amount of physical metal standing for delivery is at all-time highs. The Comex doesn’t have enough physical metal to deliver and they will do everything in their power to keep the longs from demanding delivery.
If there’s a default to deliver, the shorts will be scrambling to cover their positions and we will see a huge short squeeze. James Turk believes it could happen this by the first week in June.
“I am expecting a short squeeze where the shorts do not have the ability to deliver physical gold to meet the growing demand for metal. In the squeeze, the longs will be clamoring for metal, not paper. Keep in mind that I have been expecting gold to rocket higher as we enter into the delivery period for June gold options. The delivery period for over-the-counter options doesn’t end until next week. But the first clues as to how expiry will develop are likely to appear Thursday morning in New York with the expiry of Comex options that day.
…the central banks will fight their losing position until the absolute end. So you can expect them to flood the market with paper-gold over the next few days as we go into option expiry in an attempt to paint-the-tape and shake out some physical metal.” ~James Turk
We are still waiting on gold to break the 2011 downtrend line, so keep an eye on the price of gold over the next couple of weeks. If a short squeeze ensues, a break of that downtrend line is inevitable. We should see gold soar above 1300 and probably bypass the 1400 mark.
Thursday was option expiry for the Comex and the price actually went up on Thursday despite the attacks by the Cartel to try and suppress the price. This is a sure sign that they are losing control.
If gold takes off in the next 2-3 weeks, the same will happen with the miners, so if you’re holding positions in the miners at this time, be patient, things are looking up.
Stock Market Indices
(SPY) (QQQ) (IWM) (DIA)
Stocks continue to defy logic and soar to new highs. But it’s a nervous market as evidenced by the flash crash we had last week. This just shows that once a black swan catalyst hits, we could see a massive panic causing another flash crash.
My guess is that the PPT will continue the charade until the Fall of this year and then the perfect storm of China’s Yuan devaluation, the debt ceiling hard stop, among other things may push the limits to the brink.
If you’re a trader, then you probably have a few more months to go before all hell breaks loose. If you’re a long term investor, I would recommend reducing your stock exposure and adding some gold positions to your portfolio. Any upside from here will be minimal, but the downside risk is considerable.
There was a huge drop in oil today and the momentum appears to be in a downtrend. The next support level will be around 47 and then 43.70. We are in a sell signal at this time until we see a break of the downtrend line above 51.
Financial Sector (XLF)
Berkshire Hathaway (BRK.B) (JPM) (WFC) (BAC) (C)
The financials are struggling to gain any ground. If they bounce off of resistance at the downtrend line, they will hit a hard support line where the uptrend line and the horizontal line meet around 23. A break through support at this level will signal a strong sell signal.
Trader Favorites (FAANG’s)
(AAPL) (AMZN) (FB) (NFLX) (GOOGL)
Apple has leveled off from recent record highs and is now being squeezed into a bullish wedge. It will have to break to new highs to confirm the current trajectory. Traders should place their stops just below the (pink) uptrend line, in the event of a downturn.
Amazon, unlike Apple continues to soar to new highs and it’s only 7 points away from a record $1,000 per share.
Facebook has also faltered a bit during the past couple of weeks. We need to see a break of resistance at 153.50 to confirm a move higher from here.
According to Bank of America: based on the 20 most widely used valuation metrics, the S&P remains significantly overvalued on 18 of 20 valuation metrics, the only exceptions being free cash flow, helped by depressed capex), and relative to bonds.
"I know for certain that the Seth Rich case has scared the shit out of certain high ranking current and former Democratic Party officials. This is the reason why they have backed away from impeachment talk. They know the smoking gun is out there, and they’re terrified you will find it..."
It’s time to take the gloves off. This is really war in Washington.
How should Trump respond to the calls for an independent prosecutor into Russian ties?
Appoint a Special Prosecutor for Hillary Clinton standing trial for Treason:
This is not about Trump, every source I have is saying the same thing – this is an attempt to stop any reform process because the corruption in Washington runs so deep and they do not want anyone looking too closely.
If we see these crypto currencies continue to vector up, it would imply to me a market crash is very near at hand. For what is coming for the U.S. dollar, having it timed to the day, week or month, isn’t the big issue. The really big issue is what comes after. I do believe there will come a point with the physical precious metals, there is going to come a point, whether you have it or you don’t, and if you don’t, you won’t get any because it won’t be available. I have long said that there will come a day that you will not be able to buy precious metals with U.S. dollars. That day is approaching.”
In recent weeks it has been Japanese demand (and notable premia) that has driven the exponential rise in Bitcoin, but recently, as CoinTelegraph reports, it has been South Korea. Overenight saw Bitcoin prices explode once again, smashing through $2500, $2600, and $2700 for the first time...
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