Daily Blog: July 11, 2017 - What a day today!

When I woke up this morning, in pre-market, everything was down - see the snapshot that I blogged during the pre-market hours.

And now when the markets are about to close in 10 minutes, everything is miraculously up - see picture below:

What was the big news? Trump Jr. tweeted!! Seriously, Trump Jr. tweeted and market dynamics changed! Wow, our markets are having really strong fundamentals! And this is the market that sheeple are putting their money in and dumping the assets such as gold and silver which are the only assets that can stand between your life and starvation to death!

Dollar continues to decline and it is becoming clear that FED is losing control. Even the JPYUSD correlation has now broken down. The algorithms of High-Frequency Trading are not working in tandem now. This is the first sign when the trust among central bankers and bankers is breaking down. I have been writing about financial liquidity for quite some time now and when this trust is gone, the liquidity just dries up and the supply chain comes to a halt. Within 72 hours, the super grocery stores will be out of stock and chaos will ensue. So if you are not prepared then you are looking for a whole lot of pain.

I have also been noticing another pattern for precious metal especially silver. In aftermarket, the price slamming starts and continues till about 7:30 AM, at which point physical orders for delivery are placed at a lower price and soon thereafter the shorts which were used to drag the prices lower are covered. So what is the significance of this? It is a targeted algorithm for "search and destroy". It is looking for stop-loss limit orders and pushes the prices down so that the limits get triggered. Stop-loss orders are a safe mechanism but in "search and destroy" algorithms it works against you. As you will always lose money. So instead, don't set any limits at all and watch the market and take action on the spur. If you don't have the time or can't do it then just get out of gold and silver stocks.

The bottom line on the gold and silver is that Andrew Mcguire is probably right and the big order of 250 ton has come in and LME is finding it difficult to fill the order. Essentially, it will be game over by August 1.

Cryptos are having a bloody day and also the dollar. In just last 2 weeks, cryptos as a whole have lost about $35 billion worth of market cap. Ethereum has been worst hit. That also means that Ethereum will have the most recovery and the people buying Ethereum now will have the maximum upside. Can it go down further? Yes, it can. It is breaking the $25 channel every 2 days or so. But, in worst case scenario, $138 is the bottom price. This is where the flash crash had a pause a couple of weeks ago. The flash crash points are invariably visited during a downturn.

This is a great time to stock up on beans, bullets, and bullion. It may not be the best time but do you really want to wait for the last moment? I for one, don't.

As always, be prepared and be safe.