A-S&P Weekly

The process of discovering true value has begun, as indicated by the decline in the S&P, decline in the Shanghai Index, rise in gold stocks, rise in gold, and rise in silver.  Expect it to continue.
The reckoning has begun…



Submitted by Gary Christenson, Deviant Investor

The S&P 500 Index (chart below) shows a top in May 2015, a correction into August, and a deeper fall this month – February 2016.  Look out below.

A-S&P Weekly

The Shanghai Composite Index looks grim.


Both markets are due for a bounce with more downside thereafter.

Gold mining stocks (the GDX) have rallied over 50% since the January low.  They should correct and then rally for several years.


The chart of gold looks similar.  It has broken out of a long term downtrend, looks ready to correct, and then continue its rally past all-time highs.


The silver chart is showing the same message as gold – a bottom, breakout, possible correction, and then more rally.  Expect all-time highs in 2016 – 2017.


T-Bonds (monthly chart) look ….  well, crazy.  For a start, who lends capital to insolvent governments for 30 years at 2%?  Worse, who lends capital to insolvent governments for 10 years at negative rates?  You “benefit” from guaranteed capital destruction and are repaid in a devaluing currency?  Desperation?  Markets have gone insane?  The new normal?  Increase debt to solve an excess debt problem?  QE did not work – so the central banks must not have done enough of it?  Strange and getting stranger, or just utterly insane?

A-T-Bonds Monthly

The US dollar began a furious rally in mid-2014 and peaked in March 2015.  Crude oil and commodity prices have not recovered.  Emerging markets have been hammered.  Was the rally caused by the “strong fundamentals” of the US economy, “strength” in the US job market, “excellent management” in the US government, “intelligent and healthy” economic direction from the Fed, or …  should we expect a massive correction that brings the US dollar back toward  the 70s?

From Martin Armstrong:

“… rates will rise as we move into the sovereign debt crisis, which will pick up steam in 2017 moving into 2020.”

 “The Cycle of War turned up in 2014 … This will pick up also in 2017 and move into 2020.”

From Bill Holter:

“Markets all over the world are coming apart at the seams and “control” is rapidly being lost.”

 “The big problem is this, the dollar is the lynchpin “reserve” currency for the entire world, what would it say if we had to move to negative rates … because NOTHING  ELSE  WORKED?”

 “… you are watching the system implode upon itself…  They have started a process in motion that will not be stopped.”

Gold has no counter-party risk.  Silver has no counter-party risk.  Both have been money and a store of value for about 30 times the life of the Federal Reserve.  The intrinsic value of the dollar is approximately zero.

The process of discovering true value has begun, as indicated by the decline in the S&P, decline in the Shanghai Index, rise in gold stocks, rise in gold, and rise in silver.  Expect it to continue.

The reckoning has begun.  The ride will get bumpy.

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  1. THIS ARTICLE is dated!         The $SP500 is at 1948………….makes the chart looks somewhat different.

    Editor should have known better.  Doc just don’t put anything up. You lose customers this way.

  2. With our markets totally hidden behind the “curtain”…

    What do you expect on an “expiration Friday” eh?…

    You keep mixing bathtub gin and expecting single-malt scotch??

    Just remember…come Sun/Mon that G-20 meeting will be making news bombs.

    Wonder how long it will take for the “investor class” to go TU…

    And, for us stackers’ to hit the “buy button” – while packn’…

  3. Keep stacking while prices are low, when entering the eye of the storm.

    There could be some shaking going on this next week, so stack and pack.

    I just love the feel of the pms when making a purchase, a rocky mountain high.

    Adios Amigos

  4. snagged some ASE’s tonight. And last Wednesday.I’m starting to hear the back-up alarms of trucks in motion…why are there so many trucks backing up? I checked some sites today – and a few ONLY had 2016’s left. Usuallyt would have older coins too, but seems tight today. Plenty of AU available, but tight on the choice of ASE’s. Very Happy. I get the feeling people are buying more silver.


    As an aside – go here,  http://www.halfpasthuman.com/Hph_reports.html   , spend $15, download Cliff’s pdf, 32 page
    ALTA February 2016 : Crash Map
    and have a good 32 page read about the future  as predicted by

     algorithmic examination of humanity consciousness. This is wild. Single Malt & cigar reccomended. Turns out AU/AG works in the future…who knew?

  5. Agree with the gang. I still think December put a world of hurt on Comex gold and now the wounds can’t heal. April is the next big month.  Not only do they have a continuing phys shortage problem, but that is creating a price/option problem. End of month option expiration price has been increasing each month end since December.  That’s 2 long painful months now.  They have to drive gold to $1160 on Monday to make much impact on options.   But that will create a buying frenzy that will explode the phys shortage going into April.

    The Cartel is screwed, no way short of devaluating all of the currencies to stop phys buying.  That’s kind of Willie’s story.  I’m going to be watching Monday to buy,  I hope there’s a good smash!

    • You mean the latest version of his story?  You stackers really seem to be in control at this point.  The banking families must be in a panic right now…

    • Stacking is where ever the phys is going. There is enough gold above ground for every person in the world to have 1 oz. That includes all of the vaults and all of the stacks everywhere in the world. I don’t expect many people have only 1 oz.  I expect most people have 0 oz.

      I get your sarcasm.  But the joke is going to be on everyone relying only on fiat, and the Cartel will have to move on to plan B when their control of phys ends.  And maybe plan B will be worse than current manipulation plan A.

      As for Willie, I think he has among the most interesting,  entertaining, ambitious outlooks. I don’t care how many times he updates to his newest ideas.  And I don’t waste my time keeping score regarding predicting manipulation path and outcomes.

  6. I understand.  Who doesn’t enjoy some good fiction?(he’s certainly not my cup of tea)  I’m just not sure why it would be regularly posted on a silver selling site.

  7. in case you have not heard of

    “asymetrical linguistics trends analyisis” it is related to what we do… stacking…Cliff freaks me out. The written report is wild. But here is the free  you tube short version summary. Go to 11:30 if you have no interest in his method. (i’d watch all of it)


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