I've been debating the 'Greek Issue' so much lately I've forgotten all about stocks -- how refreshing.
How bad is it out there? Well, it's pretty bad in China. I read where the Chinese have made it illegal for hedge funds to sell Chinese stocks. Apparently it is also illegal for Chinese citizens or media-makers or media-users to say anything negative about stocks. That's bad. The Chinese intended to make stocks deflation-proof, to replace the housing market which has imploded in China. Now the stock markets are also imploding. Double-whammy.
There is a lesson in this of course, one from which our own central banks in the West could also learn: DEBT WEALTH IS EMPTY. A bubble is by definition...debt wealth...and, thus, is empty.
It's odd, the material world seems solid, but is apparently empty -- the atom is almost all empty space. And the spiritual world (the world of anti-matter) seems empty; my thesis is that it is full however. That latter part is my projection. Can't be proven yet.
Time to sell GILD, Gilead Sciences. This is a trading sell signal, not a short signal.
This trading system (EMV ASP) is one of our best -- and we recently began tallying all the long-only issues we follow in our database, to see if this trading system could function as a general stock barometer as well. This was a recent conversion -- so we don't have much data so far. But here is what we have at the moment:
In a database of 609 issues, today 137 are giving long readings, 129 are giving short readings, and 343 are neutral, out of the market. So, the bulls still lead the bears (51.5%) but the bulls as a percentage of the whole database are only 22%). Two months ago, most stocks were in the long position.
We are still long the US Dollar, with the obvious analogous mirror-image positions: short oil, short gold, short the Euro, short the Canadian loony, short the Australian Dollar. We think the real titanic struggle of the next year will be this: the US Dollar against the world, bringing the deflation the central banks have been denying and resisting for so long, paying trillions to delay. We think short positions against developing markets will be profitable; we think foreign debt is in trouble; we expect massive default in the developing world on all the US Dollar debt they took out during the weak-Dollar feeding frenzy. Now they have to service all that debt in weakening (and even devalued) local currency, while the Dollar goes higher. If this does play out, the world deflation will finally arrive, and the debt bubble will get scalped. It is a sad prospect, because it will generate all kinds of problems for humans everywhere. But it is the other (necessary) side to the Greed Wagon we have all been riding on for so long. For every inflation there is an equal and opposite deflation.
I caught flack from CBI longs when I predicted that CBI would be under 20 again before it would be over 80. It all depends on the Dollar-Oil equation. My premise is that the Dollar will rally for several more years, deflating the commodities further, deflating Dollar-loans, banks -- I'm the guy who is saying the DJI might still touch 8787 -- with no central bank dry powder to try to 'save the world' again. The world will save itself. Everyone in the world needs to diligently seek salvation through a new birth, which I also say is coming 2019. But the world needs to unload all of its debt before 2019. That will not be an easy or a painless trick.
Look how CBI moves as an anti-Dollar play, like oil does. I'm showing CBI here so I can refer those CBI longs to a new updated picture of CBI after its recent rally. CBI is 'Warren Buffet's stock' -- he's never been wrong before. I hate to stand against Warren Buffet -- he's a much better investor than I am. And he also has a lot more money that I have, to attempt to manipulate the market in his direction, if he should so choose. (I'm not accusing him of anything here.) However, the market seems stacked at the moment against anything even smelling of oil. "CBI is not an oil stock!" I am told by CBI longs. "Can't you get it through that thick head of yours!" I do have a thick head -- how can they tell from so far away. Anyway, it is dangerous to fall in love with a stock. Stocks (no stock) don't love you back. They can break your heart -- and not even apologize.
I believe the banks are a cartel (with a meistro in the FED and in the worlds central banks) who always puts them first. I believe they are dangerous to democracies, and to all countries in fact. I think they need to be dismantled, and turned into public utilities.
I am a fan of Teddy Roosevel: "It's time to break up the trusts, the monopolies." We need a new generation of capitalist enterprises, small enterprises starting from seed. To allow these seeds a chance to develop, we need to neutralize the titans of today. Remember, Saturn wanted to eat his children so none could grow up and challenge him. We need the new generation to rise up and unseat the Old -- but our Old Generation will not do this without a fight. Where are those Olympians led by Zeus-Jupiter when we need them. Yes, they will be born in 2019.
They will take the world by storm in 2028. And they will be assassinated by the Dark Lord again in 2037.
THE EVER SELF-RENEWING DIVINE ENERGY RISES AT THE EASTERTIDE OF THE COSMOS.
The Eastertide of the Cosmos will be 2028.
Best fortune in a grave world.