SD Friday Wrap: If you don’t feel like this week has felt like an episode of the Twilight Zone, you haven’t been paying attention. Here’s why…
I’m pretty sure this is not real:
I mean, sure, you can delete Tweets. You can’t edit them, oddly enough, but you can delete them, and I don’t feel like doing the in-depth search required to figure out if it is real or not. People make fake Trump Tweets all the time.
But does it matter if it is real or not?
I mean, it feels like we’re living in an economic and market Twilight Zone.
Up is down, down is up, real is not, and fake is true.
That was deep.
I mean, check out the ramp at the open, then the not one, but two saves of the DOW:
Twilight Zone stuff there.
Actually, I was a little early on that chart. That will teach me to grab my charts just before 2:00 p.m. EST.
This one should be better:
Plunge Protection Team to the rescue!
This seems appropriate right about now:
rigged and manipulated higher overbought for years?
We’re living in an economic and market Twilight Zone.
Here’s more evidence to the fact:
Let’s follow the logic here –
- The Fed is doing political things
- Exit Fed Head Janet Yellen
- President Trump, a politician, appoints his own pick to chair the Fed
- Now the Fed is not doing political things
- Now the Fed is simply “crazy” and “loco”
And those are not my words. Hear the “crazy” word not once, but twice right here:
Now, what is crazy is having a Congress (and signed into law by the President) who let the Fed come into existence anyway, who now publicly states it will destroy the dollar at a rate of 2% per year, all the while going against Article 1 Section 8, and Article 1 Section 10 of the Constitution which require fixing the standards of weights and measures of gold & silver coinage. I mean, who is at fault, the enabled or the enabler?
Neither here nor there.
While I speak for myself here, isn’t there anybody else who is tired of the whole “it takes time” to turn the country around meme?
I mean, it really doesn’t.
You abolish the Fed and get back in line with the Constitutional requirement of a bi-metallic gold & silver standard.
It’s not a pipe dream either.
It is just the simple reality that most people resist change until they are no longer able to resist change, or until change is forced upon them. People would rather live in the Twilight Zone.
So the US will collapse under its own weight, and that is just the way it is.
What a shame.
In the meantime, however, before the collapse, and before the US dollar turns into the Venezuelan bolivar, we get to live in the land of make believe.
Not all indices were rescued, however.
This is the index of companies that are supposedly immune from the Trade Wars:
At more than 11% off the recent all-time highs, the small caps are more than half of the way to a bear market, which is loosely defined as being down more than 20%.
I have been looking for a spike in the VIX:
We go the spike alright, but I don’t think the worst is behind us. Now sure, we could see the VIX come back down since we are living in the Twilight Zone after all, but I think we’re finally in for some much rougher volatility instead of the suppressed nonsense we’ve seen for years now.
And think about this logic for a second. Here’s what the “establishment” has not been able to do:
- Get Trump on the sex scandals
- Get Trump on Russian collusion
- Get Trump on the “he’s crazy” meme
- Get Trump’s approval ratings down
So what is left to render Trump ineffective?
Crash the markets.
That seems like the next logical step to me if I were the Deep State (which I’m not, contrary to the lies the trolls in the comments try to push).
Crash the markets and blame the President for it.
Is that the plan?
I’ve suggested it was before, and it seems just as valid today as it did earlier in the year.
Now, the President is trying to blame the Fed, but who controls the narrative?
The Deep State controlled mainstream media does, so most people will simply think the economy is going in the gutter because of President Trump. Now I get it – we have an economy that is crashing on its own, and no, it is not just the Fed who is at fault, for it is also the government who is equally responsible for the downfall. In the end, however, none of that will matter depending on who controls the narrative. And the Deep State is good at shaping the narrative and brainwashing the people. Think about it: there are still people who think we went to the moon. Of course, when you have the CIA controlled Hollywood reinforcing the false history, it’s not that hard to achieve, and if most people still believe we actually went to the moon, then of course nearly everybody will believe that President Trump is responsible for the economic collapse when it happens.
That’s just the way it is.
Therefore, this is not the end of the market sell-off. This is just the beginning. Could there be a slight rally here to regain confidence to pummel the markets for the next leg down? Sure. And that would give the cartel the most effect too. And yes, I’m talking about the same cartel that smashes gold & silver.
Interestingly, the dollar was not a safe haven this week:
Granted, as the paradigm changes and as the tectonic plates shift, it makes sense that the dollar is no longer the safe haven. I don’t hold the view that others do that the dollar index is going to shoot back up to 120 or wherever they say it’s going. I think the next major move in the dollar is down, not up, and by not acting as a safe haven this week, that supports my theory.
For now, bonds are acting as a safe haven:
Why anybody would want to buy some worthless US paper is beyond me, but the people will figure that one out sooner or later as well. Ultimately, somebody will get left holding the bag, only instead of thinking it is a bag of dollars, it will be more like a bag that has been filled with dog crap, doused in gasoline and lit on fire.
You do not want to be the one holding that bag.
Everybody and their brother are bearish on gold & silver right now. My two reasons why I think we have bottomed in gold & silver are fundamental in nature, and as we saw in gold this week, I called it when I said if there were any signs that economic, market, political or geo-political perfection came into question, the price of gold could pop.
Unlike most out there, I also said I have been looking for a surprise to the upside.
We sure did get a nice little surprise to the upside this week in gold:
That’s one big, fat, beautiful candle.
Not only that, but I said the technicals on gold’s weekly chart were turning bullish:
Sure looks like a bottom forming on the chart to me, and the technicals, In descending order on the chart, are looking better than ever:
- Volume has been increasing over the last several weeks
- The Relative Strength Index is starting to run
- The Moving Averages Convergence Divergence has just turned bullish this week
Yeah, I’m bullish gold right now.
I had to zoom-in real close, but silver is actually above its 50-day moving average:
Bullish, and a start I’ll take right about now.
On silver’s weekly chart, since we had those rejections at the 50-day last week, what we see is a loss this week:
But that is actually good news and bullish.
OK, “Hey Half Dollar, why is it good news that silver is down on the week?”.
It is bullish because we have two weeks up, followed by two weeks down. As silver turns up again, what we will see on the chart is that all important higher-low. That is the very first step into establishing a bull trend in one of the most simplistic ways of thinking about markets. You see, a series of higher-lows and higher-highs is a bull trend, and silver has set up to show us the start of that series.
You could say Ol’ Half Dollar’s feelin’ a little bullish right now about silver too.
That said, it is a kind-of an erratic bullishness, much like this:
But hey, these things get messy when they are on the cusp of some serious change.
And that is right where we are: We are on the cusp of change, and for the better.
It’s about time.
Palladium is looking really good right now:
Remember, we don’t want palladium going straight up, because that is not healthy, and the trend right now is bullish in preparation for the next leg-up. Check out the 50-day moving average making a “b-line” for the 200-day moving average. It’s been a long time since we have seen a golden cross, but yeah, get ready for it because it’s coming.
Platinum is in the process of lifting-off its 50-day:
Even platinum is showing some signs of life here, and as I’ve said for weeks now, it sure looks like the bottom is in, and with each passing day we get additional confirmation of that.
I have been looking for copper to come down a test support at its major moving average:
After doing just that, it sure looks like copper is building a base to me.
Crude oil is simply doing what it has been doing all year:
It may have been brutally painful being a gold bug or a silver bug for the better part of this year, that is, if you’re not a gold or silver buyer here, but for those trading crude oil, it has been an absolute roller coaster, and not the fun kind either. I’m talking about the kind that somebody pukes on at least every few hours or so.
So what can we say here as we move into the middle of October?
We are living in the Twilight Zone.
That said, as it comes to the big picture:
- Uncertainty is rising
- Gold & silver are rising
- Premiums aren’t getting any cheaper
If you can add to your physical gold & physical silver position, in my opinion, now is the time. If you can’t add to your physical gold & physical silver position, now is the time to grab some popcorn.
The storm is behind us, and though it may seem like we are living in an economic and market Twilight Zone, bright skies are in front of us.
And because we have been patient value investors, we now have the best seat in the house.
With the best view.
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.