Mr. Armsyrong; Thank you for an eye-opening conference. Can’t wait for
this year. You said 2018 was a Panic Cycle Year and that it would be
unlikely to create an outside reversal in the Dow, but we should expect
wild times ahead. Is this panic cycle impacting many other markets as
Yes. This is the beginning of the Monetary Crisis Cycle that will go
into 2021. That is probably where we will see the dollar rally break the
world monetary system. This year, we should expect most markets to test
BOTH sides of the game so pay attention to the Global
Market Watch and the Reversals. This will tell us when the trends shift.
There will be the classic fool who thinks that just because the euro
finally exceed last year’s high or gold has rallied that this is it and
that means the next four years will be the same.
Panic Cycles are notorious for trapping people on either the long or
short side. You always have to trap the majority in order to create the
slingshot to the upside of the waterfall to the downside. This is why
they remain fools for they rush in based upon a few day’s price action.
So far, everything is running its course. We are finally getting closer
to the 125 threshold of resistance in the euro and the pound sterling
has rallied with many starting to bet that BREXIT will not happen.
Buying the Euro because interest rates are expected to rise with the ECB
backing off of QE is just not being thought through rationally. QE has FAILED
to stimulate the economy after nearly 10 years, and all it has done is
subsidize EU member states. Rates will rise when they start to have to
sell to real buyers.
Then the sentiment will shift mid-year and we will
test the opposite side.
This is going to be a crazy year that seems to be divided into two trends in many markets (not all).