Timing & trends

“Junior Gold Stocks Overwhelm Seniors” – Morris Hubbartt

Gold Bumps & Grinds Video Analysis

GDXJ Overwhelms GDX Video Analysis

FXI (China Stock Market ETF) Gigantic Triangle Video Analysis

fxi gig tri

BitGold Let The Good Times Roll Video Analysis

 

Key Gold Stocks Price & Volume Video Analysis

Here is a further look at key precious metal sector stocks with important price and volume action:

More Key Junior Metal Stocks Video Analysis

Above are today’s videos and charts (double click to enlarge):

Thanks, 

Morris 

Friday, Jul 17, 2015 Super Force Signals special offer for Money Talks Readers:
Send an email to trading@superforcesignals.com and I’ll send you 3 of my next Super Force Surge Signals free of charge, as I send them to paid subscribers. Thank you!

The SuperForce Proprietary SURGE index SIGNALS:

25 Surge Index Buy or 25 Surge Index Sell: Solid Power.
50 Surge Index Buy or 50 Surge Index Sell: Stronger Power.
75 Surge Index Buy or 75 Surge Index Sell: Maximum Power.
100 Surge Index Buy or 100 Surge Index Sell: “Over The Top” Power.

Stay alert for our surge signals, sent by email to subscribers, for both the daily charts on Super Force Signals at www.superforcesignals.com and for the 60 minute charts at www.superforce60.com

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Our Surge Index Signals are created thru our proprietary blend of the highest quality technical analysis and many years of successful business building. We are two business owners with excellent synergy. We understand risk and reward. Our subscribers are generally successfully business owners, people like yourself with speculative funds, looking for serious management of your risk and reward in the market.

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Vice Index Update: As Goes Gambling, So Goes America

Last month in our Vice Index update, we noted the following:

The Vice Index points to continued consumer strength through 3Q.

The Vice Index is doubling down on consumer strength. While it shows a slight dip year-over-year for June, that’s because last year’s June was a strong base. The trend remains for strong, steady spending.

01-july-vice

…..continue reading HERE

 

Martin Armstrong: Market Talk – July 16, 2015

282x179xTrading-Community.jpg.pagespeed.ic.srRYIRu7HUYesterday, dealers spent most of the day waiting for the Greek vote and then, later in the day, Janet Yellen’s semi-annual HH (Humphrey Hawkins) testimony in front of the House Financial Services Committee. The Greek vote was rather well publicized throughout the day and confirmation that the measures would be accepted should be no huge surprise. With around 30% of Mr. Tsipras’s own party failing to back the vote, after a day of emotional debate, we should expect to see a reshuffle very soon. 2yr GGB (Greek Govt. Bond) last saw 26.5%.

The euro did trade well in early session, but by early afternoon trading the sellers were in and once through 1.1000 it never really looked back. Janet Yellen’s speech did nothing to halt the euro’s slide as she reiterated that the Fed remains on track to raise rates this year, with the one caveat being, “as long as the economy evolves as expected” the pressure increased upon the euro.

The U.S. Treasury market did not see the kind of aggressive sell-off one might expect after such rate comments, but we did see some weakness across the curve. All the way along the yield curve from 2’s (2yr notes) out to 30’s yields were 2-4bp higher after a day where we had seen some positive gains in bonds. The US$ is still seen as the safe-haven bid, which is one explanation why both bonds and stocks held-in!

Gold suffered from mid-day London, trading down over $8 at one stage to 1143. Rate talks are leaning on the precious metal at the moment, and given its recent performance, does not look to have many friends to talk it up just yet.

China saw a solid 7% growth (just out) and is reflected in most Asian Stock Exchanges. Nothing really to write home about but a positive day all around at present.

…related:

The Dow & the Two Paths To Chaos

The Biggest Trade Ever (No Exaggeration)

I won’t keep you in suspense. The biggest trade ever is in demographics. In particular, our rapidly increasing life expectancy.

Quick story. My Coast Guard friends are retiring now. You get to retire after 20 years of service, but some of them have been taking advantage of early retirement and are leaving the service as young as age 40.

Oh my God, what a deal: At age 40, you can bring home about $50K a year and then start a whole new career on the side!

In the old days, you could offer that deal because military folks would die at 47. Now they will live to 100.

Paying out benefits for 60 years to retired military personnel doesn’t sound like a great deal for the taxpayer.

Of course, the military pensions are just the tip of the iceberg. To receive Social Security, you can retire at age 62 (or 67 for full benefits). Again, that’s fine when most people die before 62. The blended life expectancy (for both men and women) is almost 79 years and trending higher.

US Life Exp 20150716 10thMan

Or my favorite chart on life expectancy ever, also a rebuttal to those who don’t like capitalism.

Life Exp Birth 20150716 10thMan

If you pay attention to Silicon Valley stuff, you know that Google and Ray Kurzweil and some other folks are working on projects that will allow us to live to 150 or even beyond. That would involve doing a couple of things, first

  1. Curing cancer
  2. Curing heart disease
  3. Curing Alzheimer’s disease

You do these three things, it increases life expectancy by another 10 years or more. And we are actually doing those things!

Once you have a cure for all known diseases (attainable in my lifetime), then you have a different problem. Cells get old and die. The Silicon Valley folks are working on that too.

Funny, if you don’t smoke, eat right, and get a little exercise, you will pretty much live to 80, no matter what. What happens beyond that is up to genetics, which we will solve one day.

So what will the world look like if people live to 100, 150, or more?

It Looks Like Greece

Greece’s retirement age (to receive benefits) used to be 55 years. Again: retiring at 55, what a deal! I would only have 14 more years to go. People are pretty healthy at 55 (though maybe not the Greeks—they have the highest rate of tobacco use in the developed world).

So if people live way longer than the retirement age, the Social Security system goes kablooey. It just does. And yet people resist all attempts to reform it.

We know Social Security is in trouble. George W. Bush tried to tackle it. For all his faults, it was the right thing to do. But he got laughed at.

The first thing we will do is to means-test the benefits, which will just make it more progressive but won’t solve the actual problem. You need to push back the retirement age, like, to 80.

But wait a minute. There aren’t even enough jobs for people to work until age 80.

I know…

The World Was a Lot Simpler When People Just Died When They Were Supposed To

We’re going to look back at the 1940s-2000s as an exceptional period in economic history—with high, virtually straight-line, uninterrupted economic growth. We had debt problems before, but biology has made them intractable.

In fact, the whole profession of economics is based on the very idea that there is population growth and inflation. What happens if birth rates decline? They are. Population growth rates will peak very soon. (By the way, the old Malthusian idea of overpopulation is being discredited.) What does the profession of economics look like with declining populations, people living longer, a dearth of unskilled jobs?

Is it nonstop deflation?

Many economists predict years of global deflation based on this premise. They say that you should buy bonds at any price. It’s a compelling argument. I think we’re going to learn a lot of really interesting things about money velocity in the coming years.

The Trade

Like tech in the ‘90s and energy in the 2000s, health care has been and will be the trade of the 2010s. You have the happy accident of huge technological advances and a government that seems willing, for the time being, to pay for it all. You hear some squawking about the cost of some treatments, but seriously, if you can cure cancer for $250,000, who is going to say no? Especially when that person’s chemotherapy, radiation, and hospital bills could easily exceed $2,000,000.

Lots of folks thought that Obamacare would tomahawk the health care sector. In classic market fashion, it has done the exact opposite. The insurers in particular have been the biggest beneficiary. You probably saw the recent Aetna/Humana merger.

People have tried for years to short biotech. Hasn’t been fun for them.

People have funny attitudes about death, you know. You ask someone if they’d like to live to 100, 120. “Noooooo,” they say. “I wouldn’t want to just sit in a chair.”

Me, personally, I’d be okay with sitting in a chair. But the point of these treatments is that you can be active into your 100s. What then?

“I don’t know…” they say.

Are you kidding me? Forever young, my man. I’m 41, and I look a lot younger than my parents at the same age (sorry, Mom and Dad). I’m still DJing parties, for crying out loud.

Still don’t get the point of Snapchat, though.

Jared Dillian
Jared Dillian
Editor, The 10th Man
Mauldin Economics

Equities In A Tight Spot

I am issuing a “Red Flag Warning” To Financial Markets for the next six months of 2015.  I have come to this conclusion that the next and most devastating financial collapse lies right in front of us. This information comes from my confidential sources who have shared this with me, and is supported by my 15+ years of trading and investment analysis experience, as well as the implementation of our financial forecasting models.

The SPX market internals/market breadth have started to correct itself and therefore the “rolling-over process” is now in progress.  This is primarily due to the 7-year cycle.  It has been slow, but steady.  So far, the result has been to pressure prices into a short-term downtrend.  This correction of the 7 year cycle will be significant!  If we look at the first three trading days of 2015, the SPX was down 2.75%.  The only other time in history that this occurred was when the SPX declined by more than 3% in the years 2000 and 2008.

Financial Markets do move in predictable waves, cycles and patterns.  Economic cycles have enabled experienced analysts, as well as myself, to correctly forecast the timing of stock market peaks and stock market crashes/corrections over a very long period of time. These cycles are currently indicating that the U.S Financial Markets and the US Economy are about to enter a major downturn. These are repeating patterns that do occur in different fractals.

There are many cycles that I have studied over the last 15+ years.  The 7-year cycle is most dominant and repetitive for our analysis and current application. We can look back at the most recent financial crisis which occurred in 2008 in which the stock market crashed, Lehman Brothers collapsed, and we were plunged into the worst recession that we had experienced since the Great Depression.   Prior to that, the last time that the stock market experienced a major decline was during the bursting of the dot com bubble, seven years earlier.  2001 was a year of recession for the U.S. economy and of major problems for stocks. That was the year in which “9-11″ tragically occurred.  Seven years earlier, in 1994, investors experienced the worst bond market of their lifetimes. Another seven years earlier brings us to 1987 in which most of us remember as “Black Monday”.  These repeating patterns are well documented in history.  The same price patterns appear, at any given time, from monthly, daily, hourly, even down to one minute charts. This is the reason why markets are “fractals”.

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This current seven year cycle also aligns with the seven year “Shemitah cycle” that can be found in the Bible.  The Sabbath year (shemita  Hebrew: שמיטה‎, literally “release”) also called the sabbatical year or sheviit (Hebrew: שביעית‎, literally “seventh”) is the seventh year of the seven-year agricultural cycle mandated by the Torah for the Land of Israel and is still observed within contemporary Judaism. All of the great economic crashes in the U.S, including the Great Depression, have been in alignment with Shemitah years.

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I first discovered a long term cycle when I came across “The Kondratieff Wave” while in my early years of studying finance and economics. It was developed by a Russian economist named Nikolai Kondratiev.  Nikolai Kondratieff (Kondratiev), a Russian economist was the first to suggest that industrial economies followed a cycle of change within business cycles which included “inflation”, the “expansion of the economy” and “deflation”, which is the contraction of the economy within a “business cycle”.

During these periods of decline that occur, in the long waves, a large number of important discoveries and inventions in the technique of production and communication have been made.   These are applied on a large scale at the beginning of the next long upswing.

The originally estimated cycle length lasts 50 to 54 years.  These are shifts over time between economic growth “expansions” and periods of economic declines of “contractions”.

This is my interpretation of the time frame.

I have defined 6 long economic waves (cycles) and each of them was initiated by a specific technological revolution:

  1. (1600-1780) The wave of the Financial-agricultural revolution
  2. (1780-1880) The wave of the Industrial revolution
  3. (1880-1940) The wave of the Technical revolution
  4. (1940-1985) The wave of the Scientific-technical revolution
  5. (1985-2015) The wave of the Information and telecommunications revolution
  6. (2015-2035?)The hypothetical wave of the post-informational technological revolution

The only thing predictable about todays’ global economy is the “K Long-Wave” economic cycle.  This is the reason more and more analysts are embracing the “K Long-Wave Principle” as an unrivaled economic indicator, and the source for accurate economic forecasts.

Our clients will profit substantially from the use of this proven advantage of the “K Long-Wave Principle”   This wave is characterized by four seasons:  Winter, spring, summer and autumn. We are currently in the Economic Winter.  We are in a global depression and experiencing an economic collapse during this period of time which is identical to the “roaring twenties”, but now it is similar to 1929. The last “Great Depression” lasted fifteen years and a World War to get out of that economic downturn.

My technical trader which is also a Capitol Hill insider went into development and research for a 5 year period of time 30 years ago. What was created was a financial forecasting model, which he implemented 25 years ago.  It is a Predictive Model in its nature.  It forecasts nearly every major market turn, within the U.S Financial Market.  It signaled that we exit all U.S Market positions on November 25th, 2014 for putting new investment money to work in US Equities.

Since that period of time, in history, the markets have just been “channeling” and going into a neutral position and we have been sitting in a “cash position” for these respective markets, which was the optimal position to be in.   When it has confirmed that the “TOP”, is in place, we will implement the proper position in which we will substantially obtain huge gains.  Until this time arrives, I ask that you follow our weekend updates.

Both, the 7 year cycle and “The Kondratieff Wave” are occurring at the same time.  This is a major occurrence that will take place very shortly.

Derivatives are going to play a major role in this next upcoming major financial crisis.  When you start hearing that word, on the news, then you will realize that things have started to really unravel. “Too big to fail” banks in the U.S have over 250 trillion dollars of total exposure to derivatives while only having 9.8 trillion dollars in total assets.

Derivatives are one of the three main categories of financial instruments.  The other two are stocks (equities or shares) and debt (bonds and mortgages).

When, not “if”, the derivatives market crashes, all U.S citizens will be responsible for bailing out the major derivatives clearing houses.  According to The Dodd-Frank Act: Section 2, U.S. taxpayers will bare the brunt. This gives the Federal Reserve the power to provide “discount and borrowing privileges” to derivatives clearing houses in the event of a major derivatives crisis.

Derivatives almost caused the complete collapse of the insurance giant AIG back in 2008. This financial crisis is inevitable because the causes of the previous one have not been solved. The derivative markets are not regulated, and they continue to grow unchecked.  The truth of this matter, is that there are no financial resources left. It is now out of control, and we just allowed it to get bigger and bigger and bigger.  The Federal Reserve, the US Congress and President Obama have created this situation, in which, there is not enough money in the world to cover these debts.

Chris Vermeulen

 

My technical trader which is also a Capitol Hill insider went into development and research for a 5 year period of time 30 years ago. What was created was a financial forecasting model, which he implemented 25 years ago.  It is a Predictive Model in its nature.  It forecasts nearly every major market turn, within the U.S Financial Market. This gives you (my) private clients the EDGE which does not exist anywhere else.  It signaled that we exit all U.S Market positions on November 25th, 2014 for putting new investment money to work in US Equities.

Find out how to profit from the coming events here:http://www.thetechnicaltraders.com/GFWSS/