Financial Sense Blog

Gold has been the talk of the town: some are raging bulls, while others are raging bears. One thing is for certain – gold is the only bull market in town; and the precious metal has been the best performing asset of the past decade.

You talk about a confusing and complex environment and you can throw the economy, stocks, and bonds all into this category. What can you really say? Here at ProfessionalStockTraderLive.com we say WOW! Amazing time we live in. Nothing makes sense anymore, so we continue to say, trade the technicals of the stock market and let them be your guide.

Last we talked on Agri-Food part of our discussion was drought in Russia and wetness in Canada. Mother Nature just does not understand that just in time inventory management requires the weather to be properly scheduled. Or, perhaps humans should come to understand that just in time inventory is fine for electronic connectors, but does not work with wheat or corn or soybeans or any of the other Agri-Foods.

I made my bed with information I learned over time, now I sleep in it, and have only myself to lean on when times get tough. Times will get much harder over the next few years as economies and currencies crumble, but owning some physical metal will make those times much more tolerable in my opinion.

Time for a very quick check in on historical equity related presidential cycle rhythm. Why? The following chart is self explanatory and important to at least consider right now. IF the presidential cycle period specific rhythm is to be important at all in our current circumstances, we're getting very close to when that cycle will start kicking in. Before taking even one step further, just how in heavens could anyone even give this a second thought with what is occurring in terms of the macro credit cycle and global economic fundamentals of the moment?

It has occurred to me that there have been two fakeout trend changes since the April top, and I am wondering if a third fakeout is in progress. The first fakeout was the rally from a double bottom and a breakout above a declining tops line, which was accompanied by a PMO crossover buy signal. This proved to be a bull trap as the rally failed.

The ‘I’s’ of the Illuminati – Invent, Infiltrate, Illiterate, Intoxicate, Incarcerate, Institutionalize, Impoverish, Immigrate, Indebt, Enslave. As each day passes, it becomes more clear that there is a plan to what we see unfolding both socially and economically. The illuminati are not the only 'enlightened' group. If investors know their plan, we can counter-attack. This is their plan.

The U.S. economy can, at best, be described as in an “L”-shaped recovery. It is anemic, faced with unyieldingly high unemployment and overburdened with debt, but worst of all, the average consumer that has little to no confidence in the economy or housing for the next couple of years. The Fed Chairman, Mr. Ben S. Bernanke tells us the future of the U.S. economy is “unusually uncertain”, sapping confidence further.

Economic recovery in the U.S. and elsewhere has slowed rapidly and private and some public forecasts are being downgraded accordingly. The Federal Reserve is sounding much more cautious, although they are not yet prepared to talk of further monetary easing. The most optimistic observers are now having to face reality. The massive stimulus packages did the job of stopping a self-feeding downward spiral but they have given us an artificial recovery.

As Iran continues to develop a nuclear capability, we should ask a few simple questions. First, will it prove disastrous if Iran acquires nuclear weapons? Second, will the United States or Israel launch a preemptive disarming strike against Iran? Since negotiation and sanctions have clearly failed, what will the major players do? What is the likely outcome of this situation?