First, my condolences to the people of France, to my French members, and, to all mankind.
Sadly, what happened in France will occur more frequently as these vast, all-encompassing macro-economic cycles converge and head toward a climax in 2020.
Those of you who have followed me for a while know that in late 2012, I also forecast rising geopolitical stress throughout the world, stress that would take many forms.
From rising financial repression by bankrupt governments … to rising currency and trade wars … to secession movements … to civil protests … increasing terrorism and even international cold and hot wars.
And sadly, those forecasts have also been coming true. From ISIS and Putin to Boko Haram and Catalonia recently voting to secede from Spain. And more.
How will they impact the markets? In the same way the trends are already unfolding. Deflation. Hoarding of cash. Capital flight, namely to the U.S. and more.
Right now, we are seeing minor reactions to this weekend’s terror in France. But nothing out of the ordinary.
Gold is bouncing a tad, which I had expected. Gold did close below $1,084 on Friday, a bearish sign. But a small bounce is to be expected before gold (and other precious metals) head still lower – into my target, November 25.
The euro, the dollar and the yen are basically flat this morning, showing little in the way of a reaction to this weekend’s events. Merely a pause. The dollar remains poised for another leg up, the euro and yen, for another leg down.
Crude oil is bouncing this morning. That’s good, as it should help fill my recommendations from Friday.
Therefore, maintain your order as follows:
If you are trading options: Using 5 percent of the funds you are trading, buy the January 2016 United States Oil Fund put options with a strike price of $14.00, symbol USO160115P00014000, at $1.28 or better, good till cancelled.
If you are NOT trading options: Using 5 percent of the funds you are trading, buy ProShares UltraShort Bloomberg Crude Oil ETF, symbol SCO, at $96.00 or better, good till cancelled.
Also hold all other positions with your related stops in place. But stay alert. I may opt to take more profits, or get more aggressive, depending upon today’s action.
Best wishes and stay tuned!
Larry
