Let me start off by saying this: I congratulate you for being a Trends Journal subscriber. Simply because NO OTHER publication on the planet comes close to the accuracy of forecasts published here. Moreover, I would like to give a tremendous shout out to The Man himself, Gerald Celente. Thank you.
With that said, if you have been following my articles in the Trends Journal, here again you have witnessed an astounding level of accuracy. All this is specifically directed to allow you to stay WAY ahead of the curve and make the right decisions moving forward. Knowledge is power! Power enough to change the world.
Occurring now in the markets is a major convergence of forces that directly affect stocks, bonds, gold, silver, cryptocurrencies, and crude. How these forces interact will have a direct impact on you and your investments.
The COVID Scamdemic has wreaked havoc on U.S. small businesses. As a result, nearly 50 percent of U.S. small businesses have been culled; they are gone and never coming back. Meanwhile, the major U.S. multinational corporations are stronger than ever… a trend that, unfortunately, will continue.
Understanding the markets today is easy. Knowing the end game – total control – allows us to make the best decisions moving forward.
As I have been explaining in detail for nearly a decade, we are in the midst of the creation of a new feudal system on a global scale: a society of extreme have’s and have not’s. Moreover, this is all by design, and it is about control.
A direct result of the Scamdemic is an accelerated wipeout of the remaining middle class, which is another trend that will accelerate. With the culling of the mom-and-pop stores and tens of millions left unemployed, the direct merger between corporate entities and this new American government moves forward. A New World Order.
A Disconnected Market
Last week, U.S. GDP suffered its largest drop in history, yet stocks put on gains.
Also, we have seen historic losses for the U.S. dollar in regard to purchasing power. A plummeting dollar creates an “inflated stock market effect”: when the dollar is weaker, it takes more to buy things, even shares of stock. Therefore, a falling dollar gives a visual boost to stock prices – it inflates them. The weaker dollar also has a profound effect on gold, silver, cryptocurrencies, crude, and other commodities. Again, it takes more deflated dollars to buy these assets, so their price, based in dollars, rises.
This recent run up in the price of gold, silver, crypto, and the falling dollar should run into a corrective phase. What I mean is in regard to gold, silver, and crypto, a price pullback to a new support level, which will begin a new run higher.
Regarding the dollar, I would expect to see a bounce to a resistance level, then the downtrend to resume.
What does this mean for stocks?
The price action of stocks is directly reflective of two dynamics: the dollar (or “DXY” dollar index) and the 10-year yield.
Below is a chart included in my previous Trends Journal article, “HOW TO STAY AHEAD OF THE MARKET.” Note how the dollar and 10-year yield interaction move stocks.
The stock market has made a significant run higher as of late and, in addition to the dollar, should also begin a corrective phase. Keep in mind that geopolitical events will move markets. Every manner of stock market positive “news” will be floated out in an attempt to keep the market inflated.
The market is used as a distraction mechanism. The public believes if stock prices are high, the economy must be doing well. At previous times, this has proven to be true.
But, today, with the Federal Reserve in complete control of the markets, stock prices have no bearing on reality with regard to price action, and they are in an epic bubble. With that, distorted stock prices do not guarantee stocks will drop. Quite to the contrary, distortions in markets can persist for long periods of time.
I expect, however, that a corrective phase in the markets is likely to come soon.
by Gregory Mannarino, TradersChoice.net
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