The Dirty 30's Are Back
The following is commentary that originally appeared at Treasure Chests for the benefit of subscribers on Wednesday, October 12, 2016.
Did you see the latest on the true state of America? 7 of 10 American's now have less than $1000 in savings.
When Barack Obama was re-elected four-years ago, I warned America was about to get what it deserves for doing something that stupid. And now we have a completely hollowed out, broke, and morally bankrupt destopian state.
Now, if you allow Hillary and her ilk to steal the upcoming election - guess what - there won't even be an America in four-years. There might not be a world, because neocon Hillary plans to take America into a 'limited war' that she and her buddies will control, because nobody would dare to shoot back being terrified of American military might.
All I can say now is - go ahead - vote for Hillary and find out what these monsters have in store for you - go ahead.
Of course it doesn't matter - because the election is rigged - right?
This is what many in England thought prior to the Brexit vote as well. As pointed out by Nigel Farage however, apparently the little people finally 'got it'; and, this should be the case in America as well - bringing out enough new voters to overwhelm status quo manipulation efforts. (i.e. the left-wing MSM has ordered their outlets to 'destroy Trump'.) This is of course not news to us. We know the election is rigged up and down the entire process, and that the only way status quo ballot box manipulation efforts can be overcome is if Trump wins by a landslide, which looks quite possible, believe it or not. As Farage points out - the 'deplorables', as Hillary puts them (down) - are getting stronger.
So get out and vote.
Trump is no treat by any means, but at least he's not an evil monster hell bent on stealing America blind and then laughing about it as you suffer.
On to the markets. I'm pressed for time this week so this will be short.
In case you didn't know, with debt levels so high these days, everything in the financial world revolves around the cost of credit. So when the TNX puts in a five-wave bullish impulse while breaking above the 200-day moving average (MA), you take notice, which is why stocks were soft yesterday, and why they will likely stay that way until interest rates soften up again. As discussed Monday, the TNX should top out sometime soon (this week), and start a multi-week (4?) correction lower, at which time the broads could see new highs with the big push on to trash Trump now. The S&P 500 (SPX) could shoot over 2200 in a final blow-off going into the election, topping out in October here, just like 2007, in a full blown 'seasonal inversion'.
What drama - no?
And correspondingly, this is when we will see precious metal shares put in a three wave corrective affair higher as well (in response to a falling rates), which should take the Gold Bugs Index (HUI) back to somewhere between 220 and 240 as it carves out the right shoulder of the head and shoulders pattern discussed Monday as well. So, I'm afraid it's not going to be a merry Christmas for gold bugs this year, as the seasonal pattern must pay deference to the rising interest rates being signaled in the charts right now. Remember, the measured move (MM) in of the H&S's in the HUI is to 115 (200 - 85), so one must factor such a probability into your own personal investing equation. Helicopter money is on the way once the broads roll over; so another sucker's rally is probably in the cards at some point in coming days, with the only questions being 'how high this time' and when?
I wished had better news, however this is the reality of the situation.
It's just like the 'Dirty 30's'. People are broke and credit is about to dry up. So precious metal shares can only rally (so far) in 'fits and starts' as various polices are attempted.
Again, the next monetarist salvo should be QE for the stock market (Fed monetizing stocks), and then helicopter money; and, if Trump gets in, his proposed tax cuts would figure into the equation as well.
First we need the excuse for all this however, which won't happen until after the election, when interest rates spike higher and equity bubbles burst.