I have way too much going on with other businesses this week and perhaps for the next four weeks, but I will continue to update what I see on NQ and other markets as they arise.
There is a risk to the downside I have discussed in charts in previous posts, the most recent being last week’s post. For ES, a handle of as low as 2200 is possible. How likely is it? It depends on several items.
Earnings on the NQ (100 stocks, cap-weighted heavily with the MANGA (Meta, Apple, Netflix, Google, and Amazon) stocks, and the ES with its 500 stocks. I have discussed all the economic headwinds in last week’s post. If the term “manga” is copyrighted, I don’t care. I like the term “manga” as it somewhat describes what the stock market is currently, a violent real-time version of Dragonball Z.
I hear all the time from people even I respect about the coming “Fed pivot” in which the Fed, through the miracle of administrative insanity, will once again cut rates and reopen the casinos again for the corporatist fascist overlords to borrow free money to toss into the equity roulette wheel.
I think Rick Santelli nails the problem. I still cannot believe the thinks there could ever be a soft landing as he said four days ago, but he hit the nail on the head with this rant. (I called him “Jim” in the video. I think I was having nightmares again about Cramer, but I will get over them, don’t worry).
If we continue to undervalue or completely discount risk, there will come a time (and that time is not that far away) when the nations of the world will discard our outlandish debt and send our currency into oblivion. That action would doom the strategic reserve currency status of the US Dollar. That would surely put us into a long and very painful recession that could take decades to repair, assuming the United States remains a constitutional representative republic and does not devolve into a fascist police state.
A most recent set of events in Japan, as described by Doomberg, could literally propel us into such an event shortly. Everyone needs to read that and understand the danger of it for the US and the EU. (To read it all, you will need a subscription, and I would get NOTHING for that. I just like his insightful analysis of economics and energy issues).
We face potential freeze-outs in Germany and other EU nations, food shortages, and skyrocketing energy prices as governments overtly shut down resource-based energy sources (nuclear, coal, natural gas, heating oil, and hydroelectric power) for unsustainable non-baseload-able forms of energy like windmills and solar panels. Corporatism and fascism are overruling economics, engineering, and logic as governments attempt to destroy the industrial and energy resources of Western nations in an attempt to establish authoritarian control of resources.
This nonsense, as well as the establishment of programmable central bank digital currencies, must be stopped as well. In future posts, I will discuss what other nations are doing to create resource-based currencies in an attempt to avoid the SWIFT system and to stabilize value in international trade.
I have to go again, folks. If you have questions, leave them in the comments. I will develop a survey shortly to see what else you want to read about or to have analyzed.
As always, THANK YOU FOR SUPPORTING THIS BLOG!
