I hope all y'all enjoyed a merry & blessed Christmas. All seven of my children were here, plus six spouses & 14 grandchildren. Wonderful, but I still missed Susan.
Markets remain in their holiday torpor, moving lazily sideways for the most part. Reminds me of trading this time last year, when silver & gold lay prone like worn out pug boxers on the mat, & stocks were just a-jukin.' That all changed in January.
When in the early 1920s Vladimir Lenin wanted to create a false anti-Soviet front to draw out the regime's opponents, he told his secret police head Felix Dzerzhinsky to organize it. "How will we get them to believe it is genuine? What will we tell them?" he asked Lenin.
"Tell them what they want to hear," Lenin replied.
As these two practiced, world class liars knew, it's always easier to convince the victims when you tell them what they want to hear. For all their doubt, people will believe the lie.
Today we are watching the stock market's Trump Rally, built on the -- dare I say it? -- lie that somehow Trump will make things better by doing -- what exactly? The same moronic socialist/crony capitalist nostrums that got us in this mess in the first place, more government spending, more debt, more government "helping" the economy.
Land o' Goshen! How can folks so readily ignore government & private debt at all time highs, pension funds waiting to bust, a gadzillion dollars of mal-investment left over from the Fed's 8 year money creating binge, a bursting bond bubble, stocks at never-before-seen all-time-high valuations -- and on this bucket of ripe hogwash the lemmings are buying hand over fist, BECAUSE THEY ARE BEING TOLD WHAT THEY WANT TO BELIEVE, not the truth.
'Tain't gonna end well.
Stocks today hit the Kryptonite ceiling again. Dow rose 11.23 (0.06%) to 19,945.04 & the S&P500 rose 5.08 to 2,268.87. Lo, a cliff waits out there in time, nay, not too distant, over which stocks will tumble.
US dollar index is flatlining, barely holding on above 103. Ended today up 0.6 (0.06%) at 103.01. Chart's here, http://schrts.co/OkJ5UT
Next move is probably down, if only for a short correction. By no means certain yet that the dollar index will keep rising -- most likely, but not yet certain.
Silver & gold both sport daily charts that suggest they have bottomed. Today gold rose $5.40 to $1,137.30 while silver rose 22.5¢ (1.4%) to 1592.9¢.
Gold chart is found here, http://schrts.co/FjiMW0
Go look at it. Today gold bored through the downtrend line, but didn't quite close there. However, look at the bowl it has formed, a rounding bottom. Only needs to stay in that bowl for a while to work its way above the lip for a new rally. Best gold has looked since the election.
Silver chart liveth here, http://schrts.co/o96FnV
Silver has formed the left shoulder and most of the head of an upside-down head and shoulders bottom. Must not violate the low made so far, 1567.5¢. Neck line is probably 1725¢, so we'll have to back & fill until that right shoulder is completed, but the end of this torturing correction is near.
Of course, both these are UNFOLDING patterns, and they always might unfold some other way. Don't throw caution to the wind yet.
BEYOND OFF GRID. My friends at Beyond Off Grid have at last completed the Beyond Off Grid documentary. Their film exposes the weakness of the modern grid system and dependence on a hyper-centralized economy. And they have solutions: returning to the old paths of productive households and local communities.
The documentary will make you look at modern life through a different lens, and help you plan priorities as you walk into 2017.
The Beyond Off Grid documentary was actually released last night for online viewing, but DVDs will be available to ship in a couple of weeks. They interviewed me for the documentary, and when I saw everything put together I was a little astonished how radical it was, not "radical" in any bad sense, but in the proper sense of "going to the root" of things. No pussyfooting.
This week also there will be online interviews at 9:00 p.m. ET every night with the filmmakers and two of the folks in the film. Yes, I am one, and will be interviewed this Thursday.
You can order the Beyond Off Grid Documentary at http://bit.ly/2hr0SxF and if you scroll down the page you can sign up for the interviews at no charge. Whoops, there's also a sneak peek at the documentary there. Take a look.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger