Martin Armstrong forecast the current flood of money from foreign countries into the US Stock Market 28 years ago on Michael Campbell’s Equity Magazine (Martin’s posting to follow):

Now here is today’s post “The Rise in US Share Market in Foreign Currencies” – R. Zurrer for Money Talks

COMMENT: I spoke this “pretend” analyst who use to be a goldbug and is now a cryptobug. Boy does he hate you. I really had to laugh for he said your computer is a fraud and your forecast on the euro was only correct because you organized it with central banks. I asked him who writes more than 500 reports on every market around the world each and every day? He said you did with staff. I asked him, how many people would it take to do that? He had no answer.

I probably would have lost an equal amount in BitCoin buying it at the high based on his emails. Thank you for opening my eyes to see everything globally. It really has helped.

GHH

REPLY: I know. I use to get real hate mail from the goldbugs. Now it is the crypto people. They really get all worked up all the time about this new technology and that how a central ledger will overtake the world. They seem to have forgotten it took 100 years for the Fax Machine to become practical. They are desperate to preach their theories because they are trying to convince the world they are right so they can make a fortune. They are like the people they hate. They are trying to manipulate the world to be as they desire rather than observing how does the world actually work.

Here is the S&P500 expressed in various currencies (click on image). This simple illustration shows how the world really functions. You will note that the S&P 500 is consolidating in US$ terms, but it is starting to breakout and make all time new highs in various currencies like the Euro. This is what I mean that each and every person will act according to their own self-interest. That is Smith’s invisible hand. The crypto advocates

are actually cheering a one-world currency. They cannot understand that the Euro is failing because centralized planning fails. Their distributed ledger requires taking political power away from governments and installing a one-world economy where we all use the same cryptocurrency. They are blind to the simple reality that we do not have that much time left. We will still crash and burn BEFORE any reform can take place. Nobody fixes anything until it breaks. Sorry – that’s human nature. We don’t have decades here.

I really do not need this nonsense. I could care less what they say or do. They are an irrelevant distraction. Nothing will prevent the collapse of the monetary system. They cannot see that. It’s not my job to convince them of anything. Let them go down with their theories. I promised I would not leave anyone behind. That does not mean I must convert these type of people who will never listen. Nevertheless, we do not do ANYadvertising and prefer to keep the individual readership small. Our bread & butter is institutions. If it was up to me, I would retire. But you see, there is no real future for we will have a choice. We move to a totalitarian state where the government will take even more power, or we move toward the light of reform and freedom. I do what I do for my posterity. That is my self-interest.

Institutions, on the other hand, prefer I do no interviews with mainstream media and to shun advertising. Naturally, they do not want to see millions of followers. Everyone wants an edge. It is a difficult road to follow through the raindrops. This is the cards we have been dealt. We just have to play them out. The crypto people would not be so nasty toward me if they were secure in what they believe. They know they have to sell their idea and convince an entire world. That is a tall order.

Less than 5% of the money is really physical. The bulk is already electronic entries. Things are changing and ONLY AFTER the crash and burn is there an opportunity for reform. But make no mistake about it, if we crash, but do not burn, then the government will gladly take them up on electronic currency so they can monitor and tax everyone on everything. Their dream is to eliminate cash. They argue it would also end crime and deficits because every querter you find on the groud they will now get their 50%+.

 After an exceptional 2017 showing a 31% return, in 2018 Stephen Todd remarkably missed the big Stock decline in January and currently has a positve return on the year with 3 profitable out of 5 trades – R. Zurrer for Money Talks

For Tuesday May 29, 2018 – 3:00 PST

DOW – 392 on 507 net declines

NASDAQ COMP – 37 on 732 net declines

SHORT TERM TREND Bullish

INTERMEDIATE TERM Bullish

STOCKS: On Friday, I predicted that the next couple of days should be up unless some sort of geopolitical event comes out of left field. Well, that’s exactly what happened. There was a political crisis in Italy and this spread fear of multiple exits from the euro currency. 

And if that weren’t enough. the prospect of a China, U.S. trade conflict raised its ugly head again. 

Then there were interest rates which dropped sharply. Lower rates hurt the banks. Hey wait. Weren’t we concerned about rates being too high a few weeks ago? That’s why we have to look at the charts. They tend to summarize the diverse inputs.

GOLD: Gold was up $2 You would think that with all the uncertainty, and a big drop in interest rates, that gold would have done better. Of course, the dollar kept surging and that kept a lid on the yellow metal. 

CHART: Just looking at the chart without the indicator, it looks negative. we’ve seen some support lines broken. However, we are not oversold as measured by 5 day RSI (arrow). An oversold RSI has a pretty good record for predicting rebounds.

BOTTOM LINE: (Trading)

Our intermediate term system is on a buy.

System 7 We are long the SSO from 112.24. We should turn it around on Wednesday, but if the S&P 500 is lower with 5 minutes left in the session, sell at the close. 

System 9 Neutral. 

System 10 – Gold We are in cash. Stay there for now. 

NEWS AND FUNDAMENTALS: Durable goods orders lost 1.7%, worse than the expected loss of 1.2%. Consumer sentiment was 98, lower than last month’s 98.8. On Tuesday we get the Case Shiller home price index and consumer confidence. 

INTERESTING STUFF : Justice will not come to Athens until those who are not injured are as indignant as those who are injured. —–Thucydides

TORONTO EXCHANGE:Toronto lost 94. 

BONDS: Bonds had another sharp rise. 

THE REST: The dollar surged to another new high. Crude oil got hit yet again. Crude is quite oversold.

Bonds –Bullish as of May 21. 

U.S. dollar – Bullish as of May 15.

Euro — Bearish as of May 15.

Gold —-Bullish as of May 24.

Silver—- Bullish as of May 10.

Crude oil —-Bearish as of May 24.

Toronto Stock Exchange—-Bullish as of Feb. 12.

We are on a long term buy signal for the markets of the U.S., Canada, Britain, Germany and France.

Monetary conditions (+2 means the Fed is actively dropping rates; +1 means a bias toward easing. 0 means neutral, -1 means a bias toward tightening, -2 means actively raising rates). RSI (30 or below is oversold, 80 or above is overbought). McClellan Oscillator ( minus 100 is oversold. Plus 100 is overbought). Composite Gauge (5 or below is negative, 13 or above is positive). Composite Gauge five day m.a. (8.0 or below is overbought. 12.0 or above is oversold). CBOE Put Call Ratio ( .80 or below is a negative. 1.00 or above is a positive). Volatility Index, VIX (low teens bearish, high twenties bullish), VIX % single day change. + 5 or greater bullish. -5 or less, bearish. VIX % change 5 day m.a. +3.0 or above bullish, -3.0 or below, bearish. Advances minus declines three day m.a.( +500 is bearish. – 500 is bullish). Supply Demand 5 day m.a. (.45 or below is a positive. .80 or above is a negative). Trading Index (TRIN) 1.40 or above bullish. No level for bearish. 

  No guarantees are made. Traders can and do lose money. The publisher may take positions in recommended securities.