Gold, US Dollar, WW-3 and Mr. Trump
5/13/2016 – A negative day with the Dow Jones down 185 points (-1.05%) and the Nasdaq down 20 points (-0.41%)
If you follow mainstream financial media, apparently there is a “no brainier…. sure thing” kind of a trade out there. That is, to short the USD and to go long Gold.
“We’re recommending our clients to position for a new and very long bull market for gold,” JPMorgan Private Bank’s Solita Marcelli said Tuesday on CNBC’s “ Futures Now .” After seeing three back-to-back years of losses, the precious metal has rallied 20 percent in 2016. And that’s just the start of the next leg higher, according to Marcelli. “$1,400 is very much in the cards this year.”
I am not sure about you, but I wouldn’t be too keen on executing this “brain dead” trade just yet. Gold technically remains in a long-term bear market. Its recent rally hasn’t confirmed any sort of a breakout. The same applies to the USD…..in reverse. But I have been telling you a little secret over the last few weeks. Here it is again….Gold Hasn’t Bottomed Yet, But We Know Exactly Where It Will
Now, let’s talk about 9/11 for a second and the US trying to pick a fight with the wrong country.
- Saudi officials were ‘supporting’ 9/11 hijackers, commission member says
- FBI has 80,000 files on possible Saudi links to 9/11 – report
- Putin: Russia will consider tackling NATO missile defense threat
- Russia speaks of nuclear war as US opens missile defense system
I am finally rendered speechless. Well, almost. It appears the US Military & Intelligence machine carpet bombed the wrong country in retaliation for 9/11. Or did they? In the meantime, the Obama Administration is hell bent on starting a nuclear war with Russia. As has been described on this blog so many times before. But do not worry, transgender folk will finally get to use the right restroom, perhaps even before we are all vaporized into the next dimension.
And finally, to Mr. Trump. Earlier in the week I shared a staggering prediction with you. Allow me to repeat in this week’s update……
To be clear, I am no longer affiliated with any political party nor do I support anyone.
With that in mind, our primary stock market timing and mathematical model yielded an important projection. It gave us a very clear sign that Donald Trump will be the 45th President of the United States.
Unfortunately, I cannot go into details of my projection, due to the risk of jeopardizing our primary premium subscriber forecast. All I can say is this. Our mathematical work and its application to the stock market lines us perfectly with what Mr. Trump has outlined in his campaign. And that can only lead to one conclusion. He will execute on his promises as the next President, unifying our long-term projections with his real world outcome.
It is my intention to reference back to this post in November and to proclaim “I told you so”.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. May 13th, 2016 InvestWithAlex.com
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Investment Wisdom Of The Day
Demeter Capital Weekly Report & COT
As you already know, Matt Demeter’s (Demeter Capital) weekly coverage concentrates on some of the most popular worldwide indices, futures, bonds, stocks, commodities and currencies. Matt’s work is some of the most accurate I have ever seen and it shows. The table below represents just a small portion of work available from Demeter Research. To learn more and to see Matt’s work in action, please Click Here.
Report Date: May 8th, 2016 (Including COT Reports).
For up to the minute long-term and short-term analysis on all of the markets below, please Click Here
What Apple’s (AAPL) Technical Breakdown Means For The Market
5/12/2016 – A mixed day with the Dow Jones up 11 points (+0.06%) and the Nasdaq down 24 points (-0.50%)
Just prior to Apple’s (AAPL) earnings, a few weeks ago, I have suggested that Apple’s stock price was building a perfect wedge pattern. Here is that article/chart Apple (AAPL) Hits An Important Technical Juncture – What Will It Do Next?
And that is where it gets interesting.
Earlier today Apple’s stock price took out an important wedge support level located at around $92 a share. Not by very much, by about $2.50, but the break was important enough. It suggests, once the stock price follows through, that Apple’s stock price has quite a bit more downside ahead. To the tune of $40-50 per share if we take typical wedge pattern characteristics into consideration.
Impossible?
About a year ago, Twitter (TWTR) had a very similar setup. I wrote about it here Why Twitter (TWTR) Should Go On Your “Stocks To Short” List and here Twitter (TWTR) Is Breaking Down. Is Social Media On Death’s Door?
Here is that chart. Please note, once Twitter broke below wedge support, something Apple did today, it proceeded to collapse over 50%.
And this is where it gets even more interesting. No one cares about Twitter and everyone cares about Apple. You can say that Apple’s (AAPL) stock price is the existential representation of the overall bull market from 2009 lows. And as I have said so many times before, as goes the Apple, the market will follow.
Can today’s technical breakdown be repaired?
Most certainly, but I must be honest, recent price action doesn’t look good for Apple’s stock price. Nor for the overall market.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. May 12th, 2016 InvestWithAlex.com
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Putin Unleashes A Devastating New Weapon: Miniskirts
Well, at least according to the Brits.
You be the judge as we start our day with a good laugh.
Mirror: Vladimir Putin’s all-female ‘miniskirt army’ display their strength in sexist military parade
Russian president Vladimir Putin unleashed his ‘miniskirt army’ for the world to see in a sexist military parade that will likely stun its enemies. The event in Moscow’s Red Square this morning showcased Russia’s modern military war machine – yet the parade of women looked distinctly out of date. Despite the strength of force on show with jets, air defence missile systems and nuclear weapons aplenty, it was the female touch that garnered most attention.
At least they got one thing right. You don’t want to mess with the Russian women.
I don’t know, but it appears that the anti Russian/Putin propaganda, particularly in the U.K., is getting a tad out of hand. And God forbid if you watch either the BBC or CNN. According to them a number of Russian tank divisions are getting ready to do a Blitzkrieg all the way to the Portuguese seashore.
Never forget, the first step in any war is to demonize your enemy. Corporate western media is doing quite a nice job in that regard.
Two Scary Charts Most Bulls Refuse To Acknowledge
5/11/2016 – A negative day with the Dow Jones down 216 points (-1.20%) and the Nasdaq down 49 points (-1.02%)
Let’s get straight to the point.
Chart #1: Inflation Adjusted S&P. Despite all of the hoopla about all time highs, the Dow/S&P are sitting at double tops achieved in early 2000. Over 16 years ago. Inflation adjusted that is. The Nasdaq is still down 20%. You would have been the smartest person in the room if you bought 20-30 year Treasury in 2000 yielding 4.5%.
Chart #2: Shiller’s Adjusted S&P P/E ratio. Shows the stock market that is selling at the third highest valuation level in history. Right behind 1929 and 2000 tops and on par with 2007 top. Do I really have to remind you what had happened shortly after those valuation peaks reversed?
Where am I going with this?
I will let John Hussman tell you.
John Hussman: Expensive Stocks Will Lead to Losses, Paltry Returns
“From present valuations, a market loss of that magnitude would not be a worst-case scenario, but merely a run-of-the-mill completion of the current market cycle. Since the dividend yield on the S&P 500 exceeds 2 percent here, that also implies that we fully expect the S&P 500 Index to trade at a lower level in 10-12 years than it does today.”
Most bulls are extremely happy with what Janet Yellen and the FED where able to accomplish over the last few weeks. Particularly, Why Short Sellers Should Send Janet Yellen a “Thank You” Card
Well, they shouldn’t be. All they have done is set up a massive “bull trap” in what is otherwise the last stage of a secular bear market that started in 2000. And considering valuation/earnings imbalances we are witnessing today, long side investors might be in for a beating of a lifetime.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. May 11th, 2016 InvestWithAlex.com
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InvestWithAlex Predicts: Donald Trump Will Be The Next President
To be clear, I am no longer affiliated with any political party nor do I support anyone.
With that in mind, our primary stock market timing and mathematical model yielded an important projection. It gave us a very clear sign that Donald Trump will be the 45th President of the United States.
Unfortunately, I cannot go into details of my projection, due to the risk of jeopardizing our primary premium subscriber forecast. All I can say is this. Our mathematical work and its application to the stock market lines us perfectly with what Mr. Trump has outlined in his campaign. And that can only lead to one conclusion. He will execute on his promises as the next President, unifying our long-term projections with his real world outcome.
It is my intention to reference back to this post in November and to proclaim “I told you so”.
Ichan, Druckenmiller & Wynn: Dead On Or Have They Gone Insane?
5/10/2016 – A positive day with the Dow Jones up 222 points (+1.26%) and the Nasdaq up 60 points (+1.26%)
When it comes to investing it pays to follow the “smart money” or ultra successful investors with a great track record. With that in mind, consider the following……
That means that the value of Icahn’ s short positions—or financial assets that his funds have borrowed rather than bought—is worth 149% more than the value of his long positions.
Carl Icahn is no longer talking. He is quite literally putting money where his mouth is. And doing so in a big way with 149% net short position. I will tell you this. I would be quite uncomfortable betting against Mr. Icahn here.
Legendary hedge fund manager Stan Druckenmiller laid out a gloomy message for the market at the Sohn Conference last week. The Duquesne Capital founder said that the “bull market has exhausted itself” after eight years of a “radical monetary experiment. The Federal Reserve’s monetary policy over the last eight years has led to “unproductive” and “reckless” corporate behavior, Druckenmiller said. The doves keep asking ‘where is the evidence of mal-investment?’ Druckemiller said. He proceded to show a chart of US non-financials’ year-on-year change in net debt versus operating cash flow, as measured by earnings before interest, tax, depreciation and amortization (Ebitda).
Mr. Druckenmiller has been very vocal over the last few months, warning investors that we are at the end of this crazy FED induced expansionary cycle. A cycle that will implode on itself. I would have to agree with his assessment
“The other day I was watching the stock open up, and it went up on share volumes of a few thousand shares. I mean, every trade was a tick up. That’s not the way it should operate in an honestly or intelligently run exchange. But that’s the thing, all those guys sold their dark pools and their order flow and the positioning on the floors of the servers to the high frequency traders. And it’s made a couple of guys that I’m friendly with very rich because they are high-frequency traders. But don’t respect the activity, and I’m severely critical of it. And I don’t mind saying so, either.”
If you have been investing for 10+ years you know that today’s markets are highly distorted. You might not be able to prove it, nor really explain how it works, but the market is indeed being heavily manipulated. As Steve Wynn explains in the article above. Now, most investors would assume that this brings stability, but they would be wrong. On the contrary, such distortions cause massive volatility spikes when the proverbial “s#&*” hits the fan.
Soros, Rogers and quite a few other successful money managers have expressed similar points of view. The question becomes, have they all suddenly gone insane or are they seeing the exact same thing I have discussed on this blog for over a year?
I will let you decide.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. May 10th, 2016 InvestWithAlex.com
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Is California Next?
A few weeks ago we discussed the possibility of a large earthquake somewhere along the west coast Should West Coast Residents Be Worried? It appears I am not the only person thinking this.
- San Andreas fault ‘locked, loaded and ready to roll’ with big earthquake, expert says
- Watch what ‘The Big One’ on the San Andreas fault would feel like
A top seismology expert this week reminded Southern California that a major earthquake on the southern San Andreas fault is long overdue. A magnitude-8 earthquake striking the southern San Andreas fault would cause massive shaking across a wide swath of Southern California from Monterey County to beyond the Mexican border. Such an earthquake would be even larger than the 1906 earthquake of San Francisco, a magnitude-7.8 earthquake that became the nation’s deadliest.
Again, these things do not happen in a vacuum. The risk is real, considering the earthquakes over the last few weeks. In other words, if you live along the west coast of North America, as I do, you should at the very least put together an emergency bag/cash. In addition to making sure your earthquake insurance is all set.