SCT Issue #240
This weekend, the IMF pulled out of any Greek bailout. So now, a bailout is in jeopardy. If, on the other hand, the ECB and the European Commission decide to go forward without the IMF, the euro will suffer even more. It’s a fait accompli.
In the end, Greece will still have no other option but to default yet again on any new loans, and eventually withdraw from the euro. That too is fait accompli.
Puerto Rico defaulted this weekend. It can’t make any more debt payments.
Welcome to the beginning of a great sovereign debt default that will soon envelope nearly all Western socialist-style governments.
Right now, most markets are taking the above two weekend developments in stride. That too will soon change, ushering in some of the most dangerous markets the world has ever seen. But for savvy investors like you and I, they will be the best profit opportunities we have ever seen.
Tomorrow is August 4, the ideal day for a cycle low in gold. HOWEVER, it now appears that gold made an early cycle low when it hit the $1,072 level on July 23.
It’s a bit too early to say for sure, because the current cycle is showing some signs of extending. That would be especially true if gold closed back below the $1,086 level any day this week.
So for now, hold all recommended bearish gold bets. If gold …
* Holds the $1,086 level this week and starts to rally, I may opt to have you close out the bearish positions and either stand aside, reentering bearish positions on a rally. Or …
* If it looks like we’re going to see a bit more powerful gold rally, back to overhead resistance at roughly $1,140 to $1,150, actually go long for a brief bull trade.
It’s simply too soon to say, so for now, I recommend holding existing bearish bets simply because gold is still trading heavily (weak).
Meanwhile, the broad U.S. equity markets are also acting weak, but there is not yet enough selling pressure to take them dramatically lower. That said, the bias is firmly to the downside, so here you will also hold the existing bearish positions on the stock market. If you do not yet own any of those positions, wait for my next recommendation.
Natural gas is looking good, basing. Hold your long position in UNG and maintain your protective sell stop, good till cancelled, at $11.64.
I am getting very close to recommending a bearish position on the euro and on crude oil. I need a bit more action to monitor first.
Stay tuned and be sure to attend my live webinar this Thursday, August 6 at 12 p.m. Eastern Time. Details on attending this free members-only event are forthcoming in your inbox.
Best wishes,
Larry
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