Flash_________ ! Oh What A Feelin'

If you were an average “investor” in the 80′s and you were asked to fill in the blank above then many would have said Dance. Today the average “investor” would probably say Crash. Therein lies a problem….HOW do you claim that market forces are restored AND normal after the collapse of the market in 08-09 when a market can fall 1000+ points in a few minutes in the middle of the day with no commensurate precipitating news? People may be sheep, but are they really THAT dumb? Some of you may have been privy to a slice of a picture taking session with Tim Geithner that afternoon when an assistant bent over and whispered the news of the Flashcrash in his ear. His reaction of dismay and bewilderment was very telling and you could clearly hear his response …”that can’t be right”…. So why would the Secretary of Treasury react with “that can’t be right”? After all we had just been through several such market movements just a year or so before. It was as though he knew the market had been “fixed” and couldn’t make any moves of that magnitude.

The reason I brought this up today was to just bring up how fragile the word CONfidence is. It takes a long time to build it up but only a “flashcrash” to destroy it. The carefully crafted rise of the market to restore the economic juices was crushed in a few minutes. This illustrates the pitfalls of manipulation of nature. Natural markets are a force of nature. You can tamper with them but every action has an opposite and equal reaction. In other words, there are moral hazards that are coming our way. It becomes compelling to marvel at the daily machinations of the PTB but don’t become mesmerized by them. There are forces that have to be reconciled with eventually. When the bill comes due, and it will, you don’t want to be unprepared. These are psyop games designed to manipulate herd behavior. I cannot possibly tell you the price of metals or miners in this type of market on a short term basis. But I can tell you that we have not seen the top in precious metal nor the miners. If you believe you are able to trade in this slaughterhouse then by all means make your bets but leverage is your enemy with these sharks.

There are many developments within our own borders now that indicate the endgame is near. Prepare accordingly and take this time while we are in the eye to enjoy our time with our family. With a little luck the other side will eventually be realized. If you prepared properly you can be much stronger after the storm passes. If this is a Cat 5 storm then just seeing the other side will be your goal. Too much doom for you to focus on? That’s understandable and I don’t blame you…..the majority are in your camp and always will be. gl