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Wednesday, October 06, 2010

Is the S & P 500 fall now on the cards, as warned in January and August?

I stated in January and again in August and September, what I felt would happen over this second and third quarter of 2010. The S & P 500 has made some efforts to break out, in this third quarter to the upside, after following the predictive pattern I set out in January 2010. I am still comfortable with the view that the market is due a negative move down, following the market's failure to continue its upward movement, resulting from governments' stimulus activities and bailouts in 2008-9. Now that these have been spent and new infusions will be added, only after the shocks have taken effect, which ly ahead. I wish to point at my previous assumptions which I have stated as part of my evaluation of this year's economic market movements.


I said on August 11th, in addition to my prediction as to the S & P 500's movement, that, if I had additional funds I would add the USD/CHF and USOil to my market trades. That statement was as follows: "If I had the funds, I would add two more trades, the USD/CHF and USoil. The first I would trade Short and the second I would also trade Short initially and then, after its support point and full turn has been reached, go Long."

I would be happy at this point to close the USD/CHF NOW, as I don't see the market falling much lower than this. The USD/CHF bottom is most likely here, at this point. I also stated too, go Short -and then Long, as oil turned, switching any time from the end of August to the first week in September would of bought real profits in both directions to this trade. I expect this to continue up to the resistance of around 88 dollars if it breaks through 83$, unless the S & P 500 turns, and a market shock takes place, which has a real possibility of occurring in this month of October. If this happens oil will follow in the short term. It would be reasonable to ask, why didn't I use my funds on the second two trades first? The answer would be, 'I could not be sure when the S & P might fall,' so I needed my limited funds to secure my entry.

I Have also said repeatedly since 2008, that Silver would be an excellent way, of both protecting wealth and making real wealth possible, over the next 5 years in particular. This view still stands. As I study the activities of Governments and the Finance Cartels and their actions over their economies, there is absolutely NO free market today. They, with the exception of only a small number of States appear to have, a bipolar disorder, in their relationship with one-another. Their interests appear to have very little to do with reality and long term philosophical perspectives and agreement with one-another. With the exception of world finance and government oligarch aspirations.

I do not wish to bore readers with my historical knowledge of governments and systems of capital, but, the following are points of historical fact. If this epoch is the final expression of the period of mature Capitalism in decay -and the system is committing suicide, as has happened at least 5 time in the last eight hundred years. Following the periods of Mercantile, Commercial, Finance and Monopoly and the so called Pluralist epochs -and, rebirth's of capitalism. The Geo-Political environment we now see growing, particularly in the last 10 years. Expose an example of the stages which follow the systemic convulsions, which exist, during the periods of decay of capital. Whether a new world empire and capital system is born of this period, only time will tell. What history has shown, is, that it requires periods of usurpation of regions and cultures.

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