All seems to be ready
for the last act
Francis Schutte – Sept
Over the last months the markets have been
behaving in an erratic, illogical and volatile way. And yet, as the puzzle
falls into place it looks like what we saw was the back stage people
preparing the setup for what could be a ‘Huge slide’ and maybe the play
(crash) of the century that is to be printed in the history books of our
CDO subprime is about to leave the eye of
the storm shortly and start its second act as the backstage actors are
impatient to join the play: Credit swaps, Credit card debt, Student
Dollar runs a current account
deficit of more than $ 800 bn per year. Unseen in history! The budget
deficit is + $ 400 bn. Even cooked there is not a
single American statistic that looks decent.
Dollar Index is running into the
Mother of all Necklines which is part of the mother of all Head and
Shoulder formations. Technically, it is extremely overbought and the net
short position of Commercials is at a historically high level. The Elliott Wave
specialists will probably soon call the end of the ABC correction/wave 4 and the start
of a huge parabolic run away 5th down wave.
Just like in 1921 with the German Mark*, the
Dollar is giving the impression that “All is well Mme la Marquise”.
Brainless Media are talking the public back into the Dollar. All problems
are behind us and the Dollar will once again shine as it has never
* In 1921 it only took 6 months before the
investors realized the huge mistake they made and to massively start
selling Marks. The German currency crashed until 1929 where it was
replaced by the Reichsmark.
bond market has run up to
a point which is extremely close to the upper resistance line of the
Top/Distribution pattern. Off course, technically, Bonds are also
are flashing the economy could fall into a Deflation cycle. Commodities
and Oil have – since this summer – been coming down in a crash mode.
are seeing a sharp correction: Silver lost half of its value
and Gold about 25%.
Physical Gold and Silver
are in short supply as demand is strongly up as a result of the push on
paper Gold and Silver this summer. In Europe, Deutsche bank has stopped
trading Kruger Rands because of the present shortage. Technically both have fallen into
historically high OVERSOLD positions. Commercial Gold traders are (they
know better) sitting with an extremely low position of Short contracts.
Elliott wave specialists will probably call the end of the ABC wave 4 correction and the start of a huge run up of Gold in its 5th
As expected Talking heads are incorrectly
calling for the end of the Gold and Silver bubble, the Investor sentiment
has become extremely negative and more and more investors start to short
gold now. What the authorities planned is happening.
Western world stock markets
all show huge double tops, secular Bear Market
Trends and have or are falling out of a rising Flag/Wedge. As they do,
they will at a certain point start their Second and strongest down wave.
Remember, October has a very bad reputation!
At this point, the scenario starts to
As selling pressure increases on the Dollar
and/or the Stock market, both reverse course. Investors start to see the
huge mistake they made by buying Dollars and Stocks over the last months
and start to liquidate their positions. The pressure increases on the
Dollar and Utilities and Bonds also start to fall. As the
Fed sits between a rock and a hard plate, it has little or no room to
increase interests in order to protect the Dollar. So, in order to keep the
financial system alive and the economy liquid, it massively starts to
monetize the debt (they buy all T-bonds and notes). Because of
hyperinflation, interest rates start to rise to levels never seen before.
At the same time, Gold & Silver
and some commodities (Oil) sharply reverse course. Banks and
financials continue to go bankrupt…
Goldonomic, Florida, USA -