my prediction for next week based on dataSo far I am 100% accurate.
What surpised me today are the momentum algos at 15 50 pm that started to sell because momentum upwrds was losing speed and volume. This is not a good sign.
They will reprogram algos knowing there is a bad start Moonday, very bad, probably 1000 points end of day especially since the fed wants to keep their stupid hawkish tone, it just shows their truly low economic IQ to highly experienced traders like me. Honesty would be better since markets are based on psychology.This was the same stupidity as 1929 when the fed tightened then.
Gold will now flourish as it did today as it uncorrelated from the US dollar today with big volumes and europeans and asians especially are parking there. Bitcoin is basically dead, no one is really trading except the mafia to keep it there.
However central banks have a problem on Monday they will not discuss gold this weekend with the maneouvering leeway they have. I know they are discuss margin calls because pension funds ave overleveraged themselves(this is why Britain pivoted) and compensate by taking leveraged risky bets on the stock market because they were only getting 2% on average in bonds. Pension funds iked to predict 6% a year which they got because of the stock market.Hovwever this betting on the stock market has already led to huge losses and they are beginning to be forced to sell as the market goes down further. The problem is that the fed dont know where all the algos are in terms of stop losses.
So the fed and central banks worldwide will flood the market at the opening with a flash humongous amount of cash to keep the markets up. The algos know this and they will wait 15- 30 minutes and start selling knowing the support funding is fading by my calculations and then it gets ugly.
Gold will go down slightly because not many people have yet gone to the gold lifeboats as the ship is sinking but they will run quickly there during the course of next week. Watch and you will see.Keep your gold stocks they will double in 6 months , this is the long awaited moment where gold stocks will detach from the group and this is highly predictable just look at the historic market crash charts, this is consistent. Forget the correlation to inflation , as a hedge,I have calculated it is really not there. The correlation is absolute with post crashes and increasingly threatening bear markets.
A possible black swan next week are insurance companies defaulting, wow, they are over 300 billion in losses and reinsurance is shaky. Increasing premiums for you and me should also contribute to what may become, economicallly speaking a defation in one year. I will let you know next week as my computers recalculate monay supply and velocity trends.and household debt levels tc. spending may just stop - period - if this goes on. Dont forget markets are psychology and crystal balls and then it gets ugly..