The Fed has turned! They are ending taper, beginning to tighten. Change in trend! Meanwhile, bullishness is at an historical high and bearishness is at equally historical lows. Now, the fed says they can change their minds anytime they want. I don't think they will. I honestly believe these are only words to pacify the markets while the deed gets done. This is the start of the tightening cycle. One that will be looked back upon as the start of a severe recession. Unemployment is rampant among young college grads. Many of our bright young minds are disenchanted, working at grocery stores, fast food joints, or, not at all. many are still dependent on their parents. Meanwhile, leadership is out for themselves, using childish strange behavioral methods to convince young people to sign up and pay for a socialistic government healthcare system that they cannot afford. Government keeps loading more costs of carrying the majority on people who are unable to deal with the burden. Meanwhile, bankers, who should have been punished more severely by the free market system for their greed and irresponsibility during the financial crisis, have rather been enriched via government ransacking of the US treasury to keep the status quo. The top not-so-all-deserving 10% are now stock market rich and happy-go-lucky, while millions of people still feel as if they are living in a recession. Where exactly does government expect to get the trillions borrowed forward to enrich this 10% and their market of stocks? Just wondering.
SELL! We are headed for recession. $85 billion a month did not get to the free market. Success cannot be governed. Paper is worthless. This being the holiday season, talking heads are singing cheery notes right now, they want a Santa rally. The truth is that the Fed is now TIGHTENING! and I have not heard a single negative word about this new change in trend. Therefore, I believe this an opportunity to review positions and get out of the market while the talking heads keep it propped up. It is also time again to buy gold as cheaply as you can get it. Although the metal will rise in price, it may be the time to focus on the gold miners because during recession energy prices will be cheap so the costs of mining will be less. There is a diamond reversal bottom on gold mining equal to the diamond reversal top on the DJI. Other factors may come into play to support my call. Sometimes a chart tells a story that has yet to be told. Good luck. Peace out. jmho |
