I remain fundamentally very bearish on everything but gold. I am bearish on peace and freedom. I am bearish on the prospects for American’s liberties and every individual right that this once great nation protected, the rights that came from the people and God, the rights that were once inalienable that “we, the people” let become dust in the hands of a increasingly tyrannical government whose very existence was derived from the citizens. I have been and remain extremely bearish on financial markets as what lies ahead will make all of our depressions and panics seem like minor perturbations, but when Armstrong speaks he should be paid attention to, of that I have zero doubts–even if I find it hard to believe.
I have been warning that this has been the most sold rally perhaps in history. Between domestic buyers and net foreign investors, they are both approaching historical lows. This is the most shorted market ever. Yet the chart pattern defies all their selling. This is setting itself up for the pop to the upside because the selling has reach reach all time highs. The majority is clearly on the wrong side of the market yet the market defies their selling.
It seems something is brewing for a major move. We urge clients to watch the reversals and the timing. Technically, we broke through the Downtrend Line and fell back to retest it. Holding that support level now is an indication of a coming pop to the upside. Pay attention to BREXIT. If Britain votes to leave and they cannot rig the election, we will start to see a contagion spread inside the EU members for a referendum to leave. The dollar can catch a bid on the initial capital crisis. When we look at the S&P500 in terms of Euro, the declines are far less due to the decline in the currency. The pattern is very flat and this is an indication also of a future breakout to much higher highs.
The net selling by foreign and domestic investors will lead to a complete reversal in their investment and that will fuel the rally.