My Initial Plan for this Week
Letting Gold dictate to me expectations
Here is a DJIA to Gold chart I have shared from time to time
What do you see?
Can you make a judgment from the price action?
Do you even know what I am showing you?
This is a good time to mention if I am obtuse or want clarification on what I write, chat with me
For many sophisticated traders, they don’t just look at stocks from one currency; they like to see the price action compared to commodities and other currencies.
The legendary one is the DJIA to Gold, which I’m showing below
I pay a lot for information in my day-to-day business life, and the same with investing, but that is someone else’s research, which I never share (except to give a shout-out when the researcher is hot)
For my subscribers, I share with you insight that you can do yourself with publicly available resources with the added benefit of doing it in your underwear
(If you can’t make a snap judgement, after my persuasive argument, then I will have to do a better job spoon-feeding my writing)
And yet this simple concept is hard to find even in paid research.
This chart is from
What this chart shows me is that the uptrend from the Fall of Iran, circa 1980, has been broken, and either
Trump immediately gains the respect of Iran
Or we are probably going to see a very quick market crash via a “crisis”
What was interesting to note this week:
Gold has never sold off this much in one week
The amount of institutional selling this week was legendary
and the amount of news of private credit risk in Life Insurance and Private debt, with NO market crash
Says to me the ALGORITHMS, not humans, are looking at past historical patterns, not the fundamentals and market realities BEFORE Bretton Woods, since data wasn’t reliable until then.
And, of course, my Kroger’s indicator is still very positive
Which says INFLATION in the USA hasn’t gotten out of hand.
Either way it plays out, a bottom has occurred in the market, and I am not sure if we are early or spot on.
This week, after the devastating attacks by the US, I think, will show us if Iran has anything in the tank for “asymmetrical” warfare that is really being played out by Russia and China.
The “crisis” could be in Taiwan and Cuba, and Trump does a grand bargain, but I don’t believe so unless Japan is on board.
The “safest” way to play this, from my perspective, is to participate in what the famous value investors are doing.
If you want more insight, consider subscribing or joining my “secret” network, which will remain secret when we hit a certain bandwidth.