The Cowards In Charge – Here We Go Again
It comes as no surprise that those in charge of government NEVER learn from the past. They actually once again admit they always want to go to war, but never have any exit strategy. Just wage constant war and at the expense of so much blood exactly for what.
Even in trading, you must define where you are wrong and you must have an exit strategy before you enter a trade. If you do not know these basic parameters, you will lose money all the time. This is why people will hold on to a losing trade because they have no exit strategy.
The morons who wage war are really brain-dead and those who authorize them to wage endless war should be the first wave in the front line. It is easy to send other people to death. That is the mark of a coward. It is another thing to fight along side them. Julius Caesar was a leader his troops admired because he fought along side them and wore a red cloak so everyone knew where he was. That was guts. Shame we have no such leaders today.
ISIS will fizzle out for their own people will grow tired of the rules. Engage them and you will make them stronger. Observe and contain – do not attack. And as for the cowards who say they should bomb them out of existence, what about all the women and children trapped behind the lines that would not be there but for force? Communism failed all on its own. So will ISIS unless attacked.
Markets in Review
The reaction rally in the markets appears to be unfolding on schedule. From the broader perspective, a corrective process in equities will send the residual cash into bonds and this may help create the final bubble top in interest rate markets. This should materialize with a correction in the dollar and that pop in the Euro. While we are looking for a break of the 80 level in the Euro against the dollar, that should not be right now.
In the cash Euro, the resistance stands at the 11360 and 11500 level. This is where we need a closing above that level to signal a sustainable pause in trend. We need a weekly closing above 11540 in the Euro to signal a sustainable reaction rally. We need a monthly closing above 12575 to confirm a pause in the downtrend.
Even gold has become a bit oversold so a reaction rally is warranted there as well. In gold, we would need a weekly closing above 1240 to create any sustainable pause at this time. We can see that our Energy Models did rather nicely in highlighting the pop and the decline. Now we can see a reaction rally is likely as we churn waiting for alignment with the global economy. We need to see a month end closing above 1256 to produce a June high.
The Dow has support at the 170004 level. A weekly closing beneath this level will confirm a retest of support. A closing below that level for month-end would then point to at least a April/May low. We still see July and October as key targets in time.
The DAX shows a daily closing below 114600 will produce a retest of support. However, a weekly closing below 117800 will warn of a retest of support on a broader level. A monthly closing below 1059000 is required to warn of a sustainable correction.
In Crude Oil a daily and weekly close above 5425 will signal a reaction rally is unfolding. Monthly closing resistance begins at 5525 with major resistance at the 8900-9000 level. June and August remain key targets in time.
The FORECASTER – London Sold Out
We really have no control over the movie. We are not involved in ticket sales etc. London sold out. Sorry we have no tickets. The reception has been amazing. The reviews have been good even in the US so far as in LA Weekly. If this get the message out that is what counts. Let’s see that hopefully we may be able to stir some reform in the right direction.
We Are Moving to A New Server Due to Huge Demand
There has been an unbelievable response to the Live Streaming Event from around the world. We are moving everything to a larger server and new links will be sent out by tomorrow. This is far beyond anything we ever anticipated. After the live stream, everything will be up one another server withing a couple of hours for viewing when you log-in. That will be different from the actual live-broadcast.
Apparently we are now into many thousands and it appears many in various government around the world are signing up. This will be an amazing event. So we will send out the links tomorrow.
So anyone planning on viewing the stream, please sign up ASAP.