This “distortion” between “risk” and “return” has created a “bubble” effect in all global equity classes. I informed my subscribers to exit the SPX on November 25^th, 2014 and to enter cash. Their equity risk exposure was reduced to zero. Momentum oscillators are now extremely overbought and are very clearly trending bearish.  I wait for confirmation before entering any new long SDS and long VXX positions.

This week (Tuesday) there is another FOMC meeting. The news of this monetary policy will be released on Wednesday, June 16^th, 2016. Expect choppier price going into the meeting and shortly thereafter.

The Only Chart You Need to Read!

The U.S. markets failed to break out!

Daily Chart Of Bonds

The bond rally set a record high in the rush to a new “safe haven”.  We are now experiencing a global rally in government bonds’ which broke out last Friday, June 10^th, 2016, while equities declined.  We entered this new long term trade on for bonds.

Daily Chart Of Gold

Nothing will stop this new bull market in gold and silver. We entered this new long term trade on June 8^th, 2016.  Now there is a stampede into this much talked about “asset class”. Just take a look as the chart of gold below.

 In short, the major trends of all asset classes which have been in place for several years are coming to an end. The majority of investors have no idea what is starting to take place and will do what the masses do every time a new bear market takes place. They will hold their positions, watch the value of their nest egg get cut 30-60% in size, and then give up and exit equities near the bear market lows 6-18 months from now. It is unfortunate, but technically we need the masses to do what they always in order for things to unfold in a controlled fashion. In a recent post, I showed where the financial markets and sectors are within this major economic cycle.

Chris Vermeulen

www.TheGoldAndOilGuy.com

related:

Martin Armstrong wrote “It seems something is brewing for a major move” – more in: Retail Sales of US Equities (Domestic & Foreign) Reaching Historical Low

“Trump has exposed the sham of “free” trade. Real free trade among two or more countries would not be negotiated in secret and add thousand-page agreements, plus thousands more pages of implementing regulations, to a world already drowning in laws and regulations. A real free trade agreement would reduce laws and regulations—tariffs and trade barriers—and there would be no need to negotiate it in secret.

Real free trade increases the US’s economic well-being. By definition, two parties don’t engage in voluntary trade unless both parties benefit. However, present trade agreements have facilitated outsourcing of manufacturing and jobs.”….continue reading Thank You Mr. Trump Part 1 

“The US government’s misbegotten drive for unipolarity is the most important issue Trump has raised.”

“The US sends its warships into the South China Sea, the Baltic and Black Seas, essentially Russian lakes; pushes NATO, which lost its raison d’être when the Soviet Union collapsed, to Russia’s western border; foments revolution in Ukraine, Napoleon and Hitlers’ welcome mat to Russia, and decries Russian and Chinese aggression. Russia and China are nuclear powers, and even if the US had a nuclear first strike capability to wipe them both out, which it probably does not, the ensuing fallout and nuclear winter would make the global warming we’re all supposed to be worrying about irrelevant. If the US does not have first strike capability, or Russia and China, singly or jointly, launched the first strike against the US, the nuclear devastation would wipe out US cities and infrastructure, rendering vast regions, perhaps the entire country, uninhabitable…..…continue reading Thank You Mr. Trump Part 2

Ozzie Jurock turns bearish on Vancouver real estate. “We’ve got a combination of cheap money, foreign buying, aggressive land speculation, multiple offers and prices have gone into the stratosphere” plus “more regulation coming”

 Don’t miss Ace analyst, Martin Murenbeld spelling out where gold’s going in What’s Next For Gold”

“The recent spike in VIX as a result of Brexit risk repricing, may be just the catalyst that forces the illiquid market to snap”

“this is precisely what the big money wants (as confirmed by statements by legendary investor billionaires such as Soros, Icahn and Druckenmiller in recent weeks). They may just get it.”

“One thing stands out in the latest Fund Managers Survey released this morning”

….read more HERE

related:

…read more about Big Names Bailing

Interview with legendary investor Marc Faber: “US economy is like botox , looks good on the outside but rotten on the inside and Hillary Clintor will destroy the world “.

“Well, if you look at her period during which she was Secretary of State, the U.S. committed several aggression’s in the Middle East, including, also, the invasion of Libya. Libya, which was probably, the only properly functioning African Economy. So, I would say that her achievements with nation building have been a catastrophe.

And then, if you put yourself into the shoes, of, say, mr. Putin, or of the Chinese – she declared while she was Secretary of State, America’s Pivot to Asia. Wouldn’t you consider that to be an aggression? China has never started a war, they were always drawn into wars by foreign powers, and now the U.S. acts in provocation of China.”

related from Michael Campbell: Guess what? The Donald and Bernie are just the beginning