‘The real money’s going to be made, after the plug is pulled’
Well, that’s close.
Actually, the real money’s made on the way down … when the plug is pulled … not after.
‘After’, is when you take the huge gains from the short side and then allocate that to areas which stand to recover … or at least have a good chance of recovery.
It’s a two-step process:
Nobody demonstrated that better than Livermore himself during the panic of 1907.
It’s probably no surprise that panic was potentially a fabricated event (sound familiar?).
It laid the groundwork for the Federal Reserve act of 1913.
Operating in parallel, we have the following:
Titanic engineering design approval: July of 1908.
Construction begins: March 1909.
Sea trials: Early April, 1912
Titanic ‘sinks’: April 15, 1912.
April 15th, is tax day … coincidence … no.
Whether or not there really is a ship (or which one is) at the bottom of the Atlantic, is immaterial.
What’s important, was that it all may have been a controlled demolition of the financial system so that it cold be ‘reset’ to allow fractional reserve banking.
The fly in the ointment? Unexpectedly, Livermore owned the market at the bottom. He could have single handedly destroyed the financial system by executing more short selling.
That’s when J.P. Morgan (possibly chief cook and bottle washer for the ‘reset’) called him in to appeal to Livermore’s ‘patriotism’; to not destroy the market. You can’t make this stuff up.
So, it’s time to reset the system every hundred years or so.
Just like it’s time to have a medical ‘incident’ and reduce the population every hundred years or so:
2019: ‘The Speck’
1918: ‘Espana’ Flu
How does this relate to the markets? For this update, the preamble above, brings us to gold (GLD):
Gold (GLD) Analysis:
It’s no secret, price action in GLD and the miners (GDX, GDXJ), has been analyzed for months as bearish.
The weekly chart shows GLD, right at the edge of a terminating wedge; about to break lower:
The measured move … to around GLD ~ 120, is exactly at the Fibonacci 161.8%, projection (not shown).
If there’s a wedge breakdown, we have two separate measurement techniques targeting the same area.
The next chess move, is probably not going to be dollar destruction.
No. The next move is likely to be as stated before, supply chain shut-down with the objective of ‘starve them out’.
This article, just out on ZeroHege is a good one-stop shop to start or continue being out in front of ‘events’.
Here’s a brief video of one man’s action, in action:
Four hens, a rooster, in an urban setting (houses on three sides).
The rooster was not part of the plan. If you look closely, you can see his ‘No Crow‘ collar … it works most of the time.
He was unexpected but is now seen as an asset.
He keeps the hens under control (otherwise, they fight) and gets them all back in the coop at night.
Is it a hassle: Yes.
Is it messy: Yes.
Will the neighbors not care about the crowing, be clamoring (and paying with cash, gold, silver) for eggs and chicks three months from now, if/when food shipments are cut off? Probably, yes
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