3:46 pm PST. On Sept. 6, 2011, gold reached an all-time high of $1921.50. Two pi cycles of 3.14 years brings us to December 17-18, 2017.
“The 37.33 month cycle is equal to 3.11 years. This also is very close to Pi being 3.141. To show the hidden order, I will for the first time publicly or even privately illustrate a point. Take the high of the previous wave 1998.554298. Add Pi in terms of years and months 3.141. This produces the date 2001.695. Take 365 days and multiply .695 yields 253.675 days into the year 2001. That amounts to September 11th, 2001.” – Martin Armstrong in “It’s Just Time“.
The first Pi cycle 3.14 years from the 9.06.2011 high produces October 26, 2014. Around that time gold made a significant low from which gold made a significant three month reactive bounce, and then continued sideways to down into its benchmark cycle low on December, which has held as the lowest low for the last 1.5 years.
11:17 am PST. The FXE is in this channel.
8:04 am Saturday. The Koreans – south and north – do not like the American military bases in their country, but they also do not want a dictator such as Kim Jong-un. It is a painful situation for the Koreans. That is why Kim Dae-jung worked so hard for so many years to attempt a peaceful reunification. But the north leadership was so corrupt and drunk with its own mirage they could not agree to anything. The situation is just painful. The South and North Koreans would love nothing more than to see US military bases gone and out, but the country has to be peacefully reunified first and when you are dealing with abject corruption in the North, it is painful. The Koreans cannot seem to reunify on their own. Kim Jong-un would try to destroy South Korea first before attempting Japan or even far away Hawaii. The US has a large military base in Gangnam, Seoul. Kim Jong-un would target that first. That is the problem. South Korea is at the greatest risk and people will die. Gangnam, Seoul is like Bevery Hills. Would Americans want a foreign country occupying Bevery Hills? No, obviously. The South has to tolerate US military occupation for economic growth. The Koreans will not ask the American military to leave until there is reunification because the north is just corrupt. It is a mess.
8:49 pm PST. The Chinese must have stopped buying treasuries. I think the neocons are really using Kim Jong-Un as a scapegoat to get at China. Threatening nuclear war right on China’s footsteps is like a no-brainer message challenge to China’s global economic rise. Do you really think the Chinese feel alright about a build up of U.S. military in their neighborhood? No! It is analogous the Russians sending warships to Mexico because of human rights violations. Mexico borders the United States just as North Korea borders China. Do you think Americans would feel alright with a massive military build up of Russian warships and military in Mexico. No! We are human on both sides of the ocean.
My target for TLT by 2020 is $50. What I think we are dealing with is a mafia masquerading as the United States government. I think the world has become more dangerous because of the United States than anyone else. Trump has become a bloated, selfish, myopic, one-sided monkey of excessive corruption, greed, war, money, and power for the neocons in Washington. I voted for this liar and I feel ripped off! I guess I was a fool. The neocons will lose this war, just as they lost Vietnam, and will drive the United States into a fiscal and moral grave.
The Chinese will probably sit back and watch the show as the U.S. shoots itself in the foot on North Korea. North Korea is not a threat to the United States. I just do not see how a country that is so impoverished can really do the U.S. much harm. This is really just trying to show some military muscle towards China over the South China Sea disputes.
1:08 pm PST. I thought we might see SPX 2405 today, but the indices decided to continue the correction into today. This makes two (2) corrective days since the 2384 high. The wave structure does not look quite done for the SPX and so I continue to expect a new high with 2405 at least. The indices and treasuries are trading inversely. TLT rallied up into the close inverse to the SPY.
Silver closed weak as did FXY. I think we still could see another new low on both SLV and FXY on Monday.
I changed my mind. SLV has not completely broken all lower trendlines. It has now backtested the down-trendline from July, which remains intact right now.
9:05 am PST. The FXY looks like it still needs to make one tiny last minuet wave down to $86 to complete the impulsive wave down, and then we will do a corrective wave 2 bounce.
8:58 am PST. I am looking for a possible retracement rally in SLV to about $17.
5:50 am PST. Silver failed to hold either of the two lower trendlines. Going out further in time, this is going to be bearish. That means I will have to look for a backtest from below, which will probably signal the kiss of death. The price action has obliterated the possibility of an ascending triangle pattern.
12:36 pm PST. I think SPX will finally see 2405 tomorrow. GDX still looks vulnernable to another drop down tomorrow.
8:05 am PST. I started long-side entries on gold and gold related instruments today. I exited out all indices long positions.
1:02 pm PST. The SPX sold off into the close, but I think it is a short-term buying opportunity. I still think we see 2405 at least this week.