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Daily Stock Market Update & Forecast – November 22nd, 2017

– State of the Market Address:

  • The Dow remains well above 23,000.
  • Shiller’s Adjusted S&P P/E ratio is now at 31.51 Now at arguably the highest level in history (if we adjust for 2000 distortions) and still above 1929 top of 29.55.
  • Weekly RSI at 78 – overbought. Daily RSI is at 61- neutral.
  • Prior years corrections terminated at around 200 day moving average. Located at around 18,300 today (on weekly).
  • Weekly Stochastics at 92 – overbought. Daily at 73 – neutral.
  • NYSE McClellan Oscillator is at +3. Neutral.
  • Volatility measures VIX/VXX remains at suppressed levels. Commercial VIX long interest declined slightly to 75K contracts net long. 
  • Last week’s CTO Reports suggest that commercials (smart money) are shifting their positioning back to net short. Short interest has shifted slightly lower during the week. For now, the Dow is 7X, the S&P is at 2X net short, Russell 2000 is now at 5.5X net short and the Nasdaq is net neutral.

In summary: For the time being and long-term, the market remains in a clear bull trend. Yet, a number of longer-term indicators suggest the market might experience a substantial correction ahead.  Plus, the “smart money” is positioning for some sort of a sell-off.

If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. 


ATTENTION!!! Please note, we have moved most of our free editorial content to our new website MarketSpartans.com Please Click Here to view it.


Ron Paul Asks: Why Are We Helping Saudi Arabia Destroy Yemen?

Something we have been wondering ourselves. 

by Ron Paul:

It’s remarkable that whenever you read an article about Yemen in the mainstream media, the central role of Saudi Arabia and the United States in the tragedy is glossed over or completely ignored. A recent Washington Post article purporting to tell us “how things got so bad” explains to us that, “it’s a complicated story” involving “warring regional superpowers, terrorism, oil, and an impending climate catastrophe.”

No, Washington Post, it’s simpler than that. The tragedy in Yemen is the result of foreign military intervention in the internal affairs of that country. It started with the “Arab Spring” which had all the fingerprints of State Department meddling, and it escalated with 2015’s unprovoked Saudi attack on the country to re-install Riyadh’s preferred leader. Thousands of innocent civilians have been killed and millions more are at risk as starvation and cholera rage.

We are told that US foreign policy should reflect American values. So how can Washington support Saudi Arabia – a tyrannical state with one of the worst human rights record on earth – as it commits by what any measure is a genocide against the Yemeni people? The UN undersecretary-general for humanitarian affairs warned just last week that Yemen faces “the largest famine the world has seen for many decades with millions of victims.” The Red Cross has just estimated that a million people are vulnerable in the cholera epidemic that rages through Yemen.

And why is there a cholera epidemic? Because the Saudi government – with US support – has blocked every port of entry to prevent critical medicine from reaching suffering Yemenis. This is not a war. It is cruel murder.

The United States is backing Saudi aggression against Yemen by cooperating in every way with the Saudi military. Targeting, intelligence, weapons sales, and more. The US is a partner in Saudi Arabia’s Yemen crimes.

Does holding hands with Saudi Arabia as it slaughters Yemeni children really reflect American values? Is anyone even paying attention?

The claim that we are fighting al-Qaeda in Yemen and thus our involvement is covered under the post-9/11 authorization for the use of force is without merit. In fact it has been reported numerous times in the mainstream media that US intervention on behalf of the Saudis in Yemen is actually a boost to al-Qaeda in the country. Al-Qaeda is at war with the Houthis who had taken control of much of the country because the Houthis practice a form of Shi’a Islam they claim is tied to Iran. We are fighting on the same side as al-Qaeda in Yemen.

Adding insult to injury, the US Congress can’t be bothered to even question how we got so involved in a war that has nothing to do with us. A few conscientious Members of Congress got together recently to introduce a special motion under the 1973 War Powers Act that would have required a vote on our continued military involvement in the Yemen genocide. The leadership of both parties joined together to destroy this attempt to at least get a vote on US aggression against Yemen. As it turns out, the only Members to vote against this shamefully gutted resolution were the original Members who introduced it. This is bipartisanship at its worst.

US involvement in Saudi Arabia’s crimes against Yemen is a national disgrace. That the mainstream media fails to accurately cover this genocide is shameful. Let us join our voices now to demand that our US Representatives end US involvement in Yemen immediately!

Daily Stock Market Update & Forecast – November 20th, 2017

– State of the Market Address:

  • The Dow remains well above 23,000.
  • Shiller’s Adjusted S&P P/E ratio is now at 31.51 Now at arguably the highest level in history (if we adjust for 2000 distortions) and still above 1929 top of 29.55.
  • Weekly RSI at 77 – overbought. Daily RSI is at 59- neutral.
  • Prior years corrections terminated at around 200 day moving average. Located at around 18,300 today (on weekly).
  • Weekly Stochastics at 90 – overbought. Daily at 48 – neutral.
  • NYSE McClellan Oscillator is at +3. Neutral.
  • Volatility measures VIX/VXX remains at suppressed levels. Commercial VIX long interest declined slightly to 75K contracts net long. 
  • Last week’s CTO Reports suggest that commercials (smart money) are shifting their positioning back to net short. Short interest has shifted slightly lower during the week. For now, the Dow is 7X, the S&P is at 2X net short, Russell 2000 is now at 5.5X net short and the Nasdaq is net neutral.

In summary: For the time being and long-term, the market remains in a clear bull trend. Yet, a number of longer-term indicators suggest the market might experience a substantial correction ahead.  Plus, the “smart money” is positioning for some sort of a sell-off.

If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. 


ATTENTION!!! Please note, we have moved most of our free editorial content to our new website MarketSpartans.com Please Click Here to view it.


Trade Of The Day – The Japanese Yen (JPY)

The Japanese Yen has been compressing into a massive long-term wedge over the last 6 years and it is getting exciting. With the wedge terminating over the next few months, the next move in the currency will be massive. Up or down. This move, of course, will have significant impact on the US stock market. If you would like to find out which way this powerful compression will break and when, please Click Here.

This Shockingly Simple Metric Confirms – The Stock Market Is Incredibly Overpriced

In today’s environment bulls and bears can argue until the second coming of Jesus about whether or not today’s stock market is overpriced. Taking all sort of shortcuts and coming to questionable conclusions in the process.

The chart above is rather self explanatory. Today it takes 115 hours of wages to buy 1 share of the S&P 500. No fudging numbers, no complex formulas and no human error. The highest level in recorded history. Higher than 1929, 2007 and even 2000.

And while the bulls would argue today’s low interest rates justify the above valuations, nothing could be further from the truth. But who am I to tell you not to pay extravagant prices for today’s below average debt inflated earnings.

If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. 

Is Gold Testing Resistance Just Prior To A Massive Run Up – Trade Of The Day

We have discussed the chart above many times before. As is evident, Gold was tracing out a massive long-term compressing wedge/triangle. Breaking out of it to the upside over the last few weeks. Since then Gold has retraced its move up to test prior resistance (upper red line). Traditional technical analysis suggests that as soon as this test completes, Gold will be ready to fly to the upside. Is it that easy or is something much more sinister is in the works? To see our entire Gold analysis please Click Here

FED’s Stupidity Or Incompetence Is Beyond Belief

Sometimes I read something that really gets my blood boiling. Here is the latest from the Ponzi Operators who are literally running our country into the ground.

Evans Says Fed Must Convince Public It Will Allow More Inflation

“In order to dispel any impression that 2 percent is a ceiling, our communications should be much clearer about our willingness to deliver on a symmetric inflation outcome, acknowledging a greater chance of inflation at 2.5 percent in the future than what has been communicated in the past,” he said in remarks prepared for a speech in London.

“I am concerned that persistent factors are holding down inflation, rather than idiosyncratic transitory ones,” Evans said, citing declines in various measures of inflation expectations in recent years.

“By and large, central bankers are conservative types who view their most important task as preventing an outbreak of 1970s-style inflation,” he said. “So perhaps then it’s not surprising that we as a group have not convincingly demonstrated to the public our commitment to a symmetric inflation target.”

Excuse my language, but these so called “smart guys” are f#*$ing morons in suits. 

I am not sure how many times I have to repeat myself here, but here we go. The FED is wondering where in the world inflation is after pumping Trillions of dollars into the economy through zero interest rates and QE.

The inflation they seek is responsible for blowing up historic bubbles of unbelievable proportions in the stock market, the bond market, the art market, the real estate market, Bitcoin, etc….

Basically, all speculative assets. 

The debt they have created doing so is deflationary in nature. That is why the real economy cannot get inflation going. As has been the case in Japan. What’s worse, when the velocity of credit runs out, the overall economy will slip back into a deflationary spiral. As bad debts will have to be liquidated.

The only way to avoid a deflationary collapse is  through outright monetization. And while slow erosion of the dollar sounds good in theory, any sort of a violent adjustment there can end up being far worse than a deflationary collapse.

Idiots, idiots I tell you!!! 

If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. 

Trade Of The Day – Junk (HYG)

We have been following the chart above and its compressing wedge for quite some time now. As is evident, the wedge was broken to the downside. Suggesting that a much bigger move down is in the works. And that what has so many people worried. Not only about the bond market, but also about the health of the overall stock market. Will this breakdown continue or is this a false break? To find out please Click Here.