Stock Market Update - Happy Easter
The following is our opinion and is not intended to be financial advice.
We're going to lead off with Bitcoin today. We warned previously that Bitcoin was going to test weekly trendline support (approx $7200) and it has now reached that level. If it cannot hold this support level and breaks below $7200 then we can expect a sharp drop to somewhere below $4000. If/When that happens, dig into your mattress and wait patiently for it to start moving higher again as this will probably be the LAST OPPORTUNITY for you to ever see Bitcoin at this price level again in your lifetime.
I also find it ironic that crypto's are tanking just before the market collapses - or at least it APPEARS that way. I would much rather invest in an emerging technology than a credit fueled everything bubble manufactured by central banks who have only created more wealth inequality and fueled corruption, propaganda, censorship, and rise of fascism in the process. If you have faith in fiat, then stop reading because there is not really anything I can do for you.
Moving on...
Earlier this week, we said the short term trend was to the downside and it did follow through but today the markets signaled an attempted "dead cat bounce" on low volume ahead of Easter (markets are closed Friday). While this is a bullish signal in the short term and those who have bought the dip have managed to realize some nice gains courtesy of the central banks and respective national debt, I would advise EXTREME CAUTION going long ahead of a three day holiday with such a turbo-charged geo-political climate where bad news is being announced on a daily basis recently.
Speaking of bad news, TSLA is acting like that drunk friend who had too much to drink this week and went back for more only to crap himself as a result. As if it wasn't bad enough that TSLA was responsible for yet another self-driving fatality, or that their bonds were downgraded, now there is a RECALL on the Model S after hours. Keep in mind all of this comes on the heels of even more manufacturing delays and several reports of quality problems with cars that have been built. All I can say to this is BEWARE OF THE ROCK STAR CEO.
While GOLD looked like it might breakout this week, it just wasn't meant to be. We do expect both crypto's and gold to breakout as the "Greater Depression" is fully realized and the "everything bubble" created by the central banks pops this year. For now, Gold continues consolidate at this level... but probably not for long. Barring any new technology that can trans-mutate other elements into gold, this will probably be the lowest we see gold in our lifetime.
I can't close without mentioning that we are seeing increased traffic with regard to Israel and it's desire to provoke a larger conflict in the region with Syria and Iran. Israel has already admitted to striking Syria more than 200 times in recent years and flew F-35 stealth fighters into Iran in the last few days. Now that John Bolton is the new US national security advisor who has strong ties to Israel and is a huge war hawk hellbent on Iran's destruction, we could be on the fast track to a much larger conflict in the region - which is something we fully anticipated in our end of year review btw.
Happy Easter and don't forget...
ACT ACCORDINGLY,
The Market Vigilante