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This is a FREAKING Disaster… And It’s Happening Right NOW!
A few weeks
ago I warned you that the US Dollar was about to collapse.
At that
time, many investors scoffed at the idea. After all, the Euro is in much worse
shape than the US Dollar, right?
Wrong.
As you can
see, the US Dollar has taken out its long-term mutli-year trendline. This is an
absolute freaking disaster. It is literally a chart version of “GAME OVER” for
the greenback.
Indeed, we
now have only two lines of support: 75 and 72, the 2009 and 2008 lows respectively.
The BIG
picture is even worse. The below monthly chart of the US Dollar going back 20
years shows a massive Head & Shoulders pattern. Once this pattern is
confirmed, we’re heading to 40 on the US Dollar index: a 50% DROP from current
levels.
If you haven’t
already taken steps to protect yourself from a US Dollar collapse, you need to
start RIGHT NOW. Both Gold and
Silver will perform well in the coming months. However, their performance will
pale compared to other, less well know inflation hedges.
Why?
Everyone
knows that Gold and Silver are the most obvious inflation hedges out there. And
to be blunt, anyone who invests in these two assets will likely do very well in
the coming months as inflation erupts in the US.
However, to
make truly ENORMOUS gains from inflation you need to find the investments
that are off the radar… investments that the rest of the investment world hasn't
discovered yet.
I'm talking
about investments that own assets of TREMENDOUS value that are currently priced
at absurdly low valuations: the sorts of assets that larger companies will pay
obscene premiums to acquire.
Look for the
hidden gems and you could make a fortune from this disaster.
Good
Investing!
Graham
Summers
PS. If
you’re getting worried about the future of the stock market and have yet to
take steps to prepare for the Second Round of the Financial Crisis… I highly
suggest you download my FREE Special Report specifying exactly how to prepare
for what’s to come.
I call it The Financial Crisis “Round Two” Survival
Kit. And its 17 pages contain a wealth of information about portfolio protection,
which investments to own and how to take out Catastrophe Insurance on the stock
market (this “insurance” paid out triple digit gains in the Autumn of 2008).
Again, this
is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com
and click on FREE REPORTS.
PPS. We ALSO
publish a FREE Special Report on Inflation detailing three investments that
have all already SOARED as a result of the Fed’s monetary policy.
You can
access this Report at the link above.
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Youtube>>> Currency Extinction Event;
U.S. Pledged to the Chinese
by W. O'brien
>>>> watch this... video
I see no links Jimbo.
Invest in Zerohedge comment threads, they're finally being monetized and might I say ever so subtlly even. It's like the debutante ball of fresh investment ideas. Good show.
A gratuitous blog plug would seem in order at this point. www.tradewithdave.com
Zebra pelts - from Zimbabwe
The flip side of CNBC here. ... credibility waning
Possible positive divergence on the MACD & RSI14 if both can manage to cross their signal line on the daily DXY
I'm long Mattel.
Long the US Dollar. Especially if you have Euros, Aussie or Canadian Dollars.
Sounds like we're close to a bottom then.
CRE
alpaca farming
Greetings, BurnBright.
I am glad to have a chance to respond to this thought, as it has been around for about a week and I would like to refute the logic.
"1) There was not a knee jerk reaction to buy dollars from this turmoil."
Since the USD did not ramp, that must mean that the world has lost faith in the dollar as a global reserve currency!
This is not exactly true. For the premise to be accepted, several things must be assumed:
For the sake of argument, let us assume that the Western financial world was indeed being threatened and a panic ensued. Oil is priced in dollars...but we have as many dollars as we want. Think how it would be done to titrate algorithms to keep the price of oil to within $0.01. It could be done easily, if we wanted. (Of course volumes would be suspiciously high and the nano-second movements would give away Sack Frost but we could do it in theory...) Have a look at the Sydney ASX tonight for an example.
What I mean to say is that even if there were a crisis, we have the means to control the price of oil on the open market. Did you notice when Egypt was erupting in riots that oil just flat-lined for two days? I realise that Egypt is not an oil-producing country but one would have thought that there would be some reaction in the markets those days.
Nothing. Nothing at all.
How do you think that happened? The same way. It is the reason trading the Euro lately is so frustrating. Nothing makes sense. I am afraid that I have been duped into believing I have a fair shot. I now know that I don't.
You and others, on the other hand, have also been duped into believing that the USD and the price of oil are moving of their own volition. Sorry, they're not. We can make as many as we want.
So, you went long the dollar a while ago didn't you?
Although I agree with some of the commenter's here that the author didn't explain his reasoning well enough for a significant devaluation of the dollar I would like to point out two important issues with the current unrest with the middle east that support his argument.
1) There was not a knee jerk reaction to buy dollars from this turmoil.
2) The US might also be causing the dollar to be considered risky from the stand point of certain dictators who currently receive foreign aid and hold US dollars if they know that the US government will simply intervene and depose them and freeze all their assets when they crush popular rebellions. Think of it this way, the US is printing money like mad at the expense essentially of the rest of the world. The only reason all these other countries accept this is for one of several reasons but the main two are:
1) The dollar trades for natural resources, and you can buy US made weapons with them.
2) The US government gives "foreign aid" to the governments with rich resources to secure dependency to the maintenance of the continuation of the officials within that government.
But the US puts these bought dictators in an impossible scenario where the collapse the economy is guaranteed while also having to continue trying to deplete resources without stopping revolts violently. At some point people reach a threshold where they simply can not continue to suffer without acting and apparently the middle east has reached that point. If the US steps into Libya and get involved in a third war in ME then you can bet that some of the other dictators are going to realize they can't continue to trust that their dollar assets are safe in the hands of US companies nor can they trust the US governments continued support in the event of a civil uprising. If that is the case they will have to reevaluate the cost benefit of supporting the dollar.
somebody allowed this shite to be posted.
Standards are dropping.....
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https://www.bitcoinmarket.com/
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Management
Sport Matthew
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Iceberg Slim
This article is very valuable. It reminds me that there are shysters, cut-throats, scam artists, bunko broncos, snake oil salesmen, and manipulators everywhere - even on ZeroHedge.
Buy our wonderful newsletter and find out all about "off the radar wunder investments that will go up 10 thousand percent in three months!"; and etc. Yeah, they're here alright/
Blue Horseshoe loves Anacott Steel.
Yeah? Who's inside?
This article is worthless... technicals are also pretty much worthless.
Based on this article's reasoning with technicals, in 2008 the dollar should have dropped to 0, because there was no "support" anymore.
What is this guesstimation to "40" based on? Why not 50? Or 30? What timeframe are we looking at here?
As far as other investments, the author must be talking about baseball cards... the ultimate inflation hedge that nobody knows about. :/
Wrong, boys and girls!
Two words:
Truffles
Goats.
I am moving to Kentucky and starting a truffle plantation with specially trained goats. The male goats, once they have located a fat and gigantic truffle, are so overjoyed that they immediately make goat-love to the female, who makes more baby goats, that find more truffles.
Now I have goat milk, from which I can make world-class feta cheese that (along with my fat, juicy truffles...) I can sell to the French or the Greeks. Those people will pay forty thousand Euros for a pound of fungus!
Unreal.
Easy money, I'm telling you.
Orly ! I'm tellingl you it's time to short the Euro !. Never mind the goat receptacles, or whatever. (It sounds like somebody is getting biology in my logic).
Yes, I know. Problem is, my robots tell me to short and they tell the big boys I'm shorting. I get short and boom! In ten minutes, I've lost thirty pips.
I could literally give ten to twenty examples over the past five weeks but I don't feel like doing the research and you know what I'm saying is true.
I am curious though, as to your methods. So, we have a bearish Gartley? Over-extension on Fibonacci? What makes you so sure I should forget my wonderfully off-the-radar, inflation-hedging idea about goat receptacles or whatever, drop my trowel and sell Euros? And what am I selling against? Certainly not the AUD! USD? JPY? CHF?
Or are you just trying to steal my idea? Hmmmmm?
I'm so pleased that you responded. The problem with FX trading is the excessive margin. If you can reduce the margin, greatly, and expand your time frame, the Euro is going down ove the next month, say. But it's quite impossible this supra-technical analysis for the 30 pip trade overnight; etc. You have to allow a reasonable room for a stop loss. Although, it just so happens, that at this moment I think you really have a clear shot a it. I mean EUR/USD, of course; not some kooky illiquid thing. It's just the top of a trading range, with the "news" basically in favor of the continuation; which is a 9% probability. Research shows that most liquid markets trade in their range most of the time; ie. at the top of the range they reverse. Of course, this is terrible heresy if you have some kind of trend following mantra. But I am strictly interested in top and bottom calling; not trend following. Also, allow at least a month for this to work out; probably longer; in other words, don't have a price goal; just let it run. If you get in all right, just set a zero loss stop and leave it to do its thing. This is a method of trading; but I am so lazy, I never write the book!. Anyway, best of luck, and an old Persian proverb; "you don't have any problems; buy a goat". Cheers!.
My normal manner of trading is that: pick an extreme and let it run. The problem is that the extremes aren't real any more. The top of this range is no more valid than the top of the range last week. In fact, last week, the top conformed perfectly with long-term Fibonacci levels (on the Weekly...) and when I got a sell signal, the EURUSD ramped 81 pips in 17 minutes.
That's not normal. That never happens. That can't happen, yet it happens almost every other day. It is difficult to watch a trade moving against you for 81 pips in such a short period of time and just shake your head.
I was thinking that the EURJPY is a better short. It is also way out above its normal range into extreme territory. If the NFP comes in lame tomorrow, the yield on the 10-year will fall and take the USDJPY and the EURJPY down with it. I have the pair down to at least to 114.082 but who is to know?
The AUDUSD short looks far more predictable to me.
Two things; I got caught out last week, also, I have to be honest with you. I don't take positions in FX anymore, but I thought, OKay, tht's good, short the EUR. and boom; I got screwed. So, I'm not perfect or even great, just a little better than 50% ! And, also, I really don't think there's any such thing as a Fibonacci number in chart reading. There's a really, really, old saying that if you're acting to make money, slow down because you're going too fast, and if you're acting to protect your money, hurry up, because you're going too slow. Upward spikes are great when you know you want to go short, if you wait for them? !
Well, this is a very interesting dialogue. I salute you for your top/bottom picking; usually people scream at me for suggesting such a thing. I believe that last week, for instance, or just, really, last week; was a kind of a rehearsal, or a try out; like the opening of a play; and now we see the EUR really will start down; many markets, such as Silver produce these spikes against what much happen next; and then the necessary move begins. So, in short; this isn't last week; and your probabilities have improved ! Many very significant trades have had to be put on several times; in other words, the direction and the underlying was right, but they had to tryt again; even so with Mr. Soros and the Pound. With regard to the other pairs, I want to say, no one can specialize in all these markets. I mean, I don't insult you, but no-one, really can do this; it would be better to just think about one major liquid market such as EUR/USD, or CABLE, but not probably three or five of them. I really haven't looked at any JPY charts, I don't have any "feeling" for them, whatever that means. Sometimes being stubborn is good ! But of course, we all have to have stop losses. I hesitate to mention this, but I have friends in Austria who tell me, no way. This Euro is cooked, now. put a fork in it. So, I don't know, but it looks like a short to me. If I had to do something tomorrow, probably I would short the Long Bond on the CME, which made a beautiful declining double top in Sept., and Oct. last year and has now established a forty degree down channel that will probably persist for years. So, best of luck, and watch out for those Goat Receptacles.
This is a very, very unusual pattern on the EURUSD H4. I don't recall having seen this pattern before. I have a similar set-up I call a "mesa," whereby a peak from a large move is retraced slightly and after a period of time, the peak is retraced (an extended double-top...) and the pair returns to at least fifty percent of where it began the move higher.
This pattern is the opposite. The table in the middle is higher than the formation and I just don't know what to make of it. The only thing I can think of is a bullish pennant.
How do you think?
I'm so pleased to speak with you. The double top says it all for me. This formations, or what have you, must be corresponding to human opinions and decisions. There is no "market" in the sense of a machine that responds to X input; etc. It's people. The double top is very importaint; it signals; failure. overhead failure. The idiotic Zen Buddhism of markets says, that which can't go up, goes down; and vice versa. Also; it's an historic top; it has failed here; (or as near as dammit), several times. Important players, (human beings), expect it to fail here-abouts, and they plan on making money now on the short side. ech? So, this is all what I know. Not much. But I like the contrarian nature of this EUR/USD now. I don't actually do this anymore, I just squat on my Silver and wait to die; my grandchildren can go to whatever University they wich anywhere in the world. eh? Cheers.
What? You're not ready to die! (Not until you tell me everything you know...)
Congratulations on taking care of your grandchildren. I imagine that is the best feeling in the world and nothing even compares or comes close. :D
We'll see how the trade works out!
That's very kind of you to say. Sometimes I'm surprised to remember that I actually left something for the future; I spend a lot of time worrying about things like whether or not gravity vectors are co-incident with electromagnetic vectors, but at least I didn't hurt anyone; as they say there are no widows or orphans in the commodity market !
Well, according to this guy, they may be co-incident but not in the way you think:
http://www.symmetrymagazine.org/breaking/2010/10/20/fermilab-scientists-to-test-hypothesis-of-holographic-universe/
Which would explain this nicely, too:
http://twm.co.nz/hologram.html
:D
Leaving something for your children is the most noble goal. I hope to be able to do it myself some day. I know many people (presumably...) your age but they not only left nothing, they emptied the cabinets on the way out.
You should be proud.
your first reference is excellent. I'm in sympathy with a quantum limit on the action of gravitons, etc, to creat the basic granularity of the observable.(universe). I worked at the Bevatron at the Lawrence Rad. Lab. at Berkeley Calif. when I was 14 years old. It was very interesting. Now it has been demolished and the hillside re-planted in the native weeds. This makes me feel that I lived too long. It seems slightly insane to scrap out the Bevatron; I mean this was the worlds most powerful particle accellerator and it produced anti-protons, that we could photgraph. Real pieces of anti-matter, not just a theory. Oh, well. its gone now.
I know a guy that has a farm on which the Ameikan black bears are raised for the Chinese Oligarchies. He's making a killing there. We're talking about your future world reserve piece of shit paper.
I know a guy that has a BCBud farm back up in the mountains on which he uses Black Bears raised to guard it against roving Hell's Angels and the RCMP Oligarchies.
He's making a killing there. I'm talking about the future of the world reserve of the best smoke here.
http://www.cbc.ca/news/canada/british-columbia/story/2010/08/17/bc-marijuana-grow-op-bears.html
If he had a good veterinary surgeon, he could make a lot of money and not kill the animal.
They are mainly after the gall bladder. Other than that, there is not very much use for the black bear besides hunting and carpets.
In Chinese medicine, the gall bladder and bile of the black bear (or really any bear- but a panda is actually a raccoon...), helps to clarify and tonify the Liver channel. The Liver is responsible for clear thought and bright eyes, strength of character; sort of like huevos in a sack. Some say that the bile is an excellent aphrodesiac. I just think these guys like to tell their friends that they had black bear bile and went boom-boom long time.
I don't know nothing about the Chinese shit. But, the freshly-slaughtered bears taste so fucking good, espeically with fresh blueberry/butter sauce. Those Chinks fly in and pay five grand FRNs per person for a bear meal. Jim Rogers is absolutely right that farmers will drive Lamborghinis.
You ate a bear? omg
What's it like (...and don't tell me it tastes like chicken)?
It's better than any of other meat, including Kobe beef, that I have ever tasted. It doesn't taste like chicken. The black bears have a very healthy organic diet, and basically that explains the difference.
PENNY STOCKS!
a few years back PM stocks were penny junkies
'Scuse me, but a good inflation hedge doesn't need to be off the radar to work well, it just needs to work. In fact, more liquid markets are generally safer, all else being equal, so being on the radar should be better.
Now, for greedy risky speculation, or losing all your money, off the radar is most excellent....
The chairsatan's mad printing does not even come close to creating the volume of dollars necessary to cover obligations priced in dollars. People know this, and that is why they are betting on QE3.
CNY's and EUR's are roughly $10 trillion each in M2, USD is about $8.8 trillion, and JPY's are somewhere below USD.
Consider that USD is a $15 trillion annual GDP (30% of which is government waste), and the promises to pay are a 5x multiple of that... while the underlying volume of USD is only $8.8 trillion.
Another feather in USD's cap is that 10yr treasury bonds will collapse in a real crisis - ie, you will know when a crisis becomes the 'real deal'.
Rent rooms out to hookers and goddesses. Winning!
Get long tiger blood, ninja!
Orly, ! It's time to short the Euro ! Really. This time I won't snatch the football away; honest!
Alien technology?