Soros Throws in the Towel


COMMENT: Marty; You have beaten Soros. Don’t know if you have seen this, but they now report “George Soros finishes his crash bets against the US stock market. The investor legend seems to have lost its way and acts with little fortune. Now he has to reveal himself.”

PC

REPLY: Interesting. Soros became famous with the bet against the pound. But let’s make this very clear. That was a “riskless” trade betting against the break of a peg. If you are wrong, the peg holds and you get your money back. If you are right, you make a fortune. Everyone was betting against the pound. That was the coup against Margaret Thatcher who really wanted to take Britain into the euro. They forced the pound into the Exchange Rate Mechanism (ERM)  and placed it at a high rate became Europeans still think the higher the currency the stronger the economy, which results in deflation. That was an easy trade. It is no different from going to a casino and betting or red or black and when you lose, they give your money back until you win.

Soros is old school. He still believes in the Quantity Theory of Money and has been a punter short-term, but when it comes to long-term strategy, sorry, I do not believe he actually grasps the entire picture.

Anyone who has been bearish on the US stock market since 2010 constantly calling every new high the final high, is attempting to forecast with personal opinion. That will not survive the type of move we have been in since the 2009 low. Even Barron’s laughed at out forecast that the Dow would make new highs back in June 2011. All of these people (MAJORITY) totally misconstrue even how the economy really functions because they are still influenced by the theories that were indoctrinated into in school after the 1930s. They obviously lacked the curiosity to challenge what was being taught and look with open eyes and mind and simply ask – Did it work?

Top 30 Risky Banks – Does it Really Matter?


The Royal Bank of Canada (RPC) has been added to the list of the top 30 banks posing the greatest risk. The top US bank is JP Morgan which is now the only bank required to hold an extra 2.5% of common equity after its US peer Citigroup moved down a tier required to hold 2% extra.

All of this is very nice, but also misleading. The Stress Tests by no means are realistic. It is assuming a single failure and certainly does not even take into consideration a CONTAGION, which nobody understands and there have been no models that will even simulate such events outside of what we have specialized in. The CONTAGION is what created the Great Depression and Herbert Hoover in his memoirs explain how capital acted “like a loose cannon on the deck of the world in a tempest-tossed ers.” Even the CONTAGION that hit in 2010 when Greece petitioned the IMF for a loan and traders immediately looked to see which country would be next, people do not understand that once blood is drawn, capital responds rapidly in the entire spectrum.

Even during the Long-Term Capital Management debacle in 1998, the crisis was in Russia. That sets off a need for liquidity and then all other markets are liquidated trying to raise cash. This is how a CONTAGION unfolds overpowering the fundamental analysis entirely.

 

Economics to this day still does not comprehend the CONTAGION that hit in 1931. It is the CONTAGION that presents the most significant clear and present danger to society as a whole. This is what reshapes countries and politics. We saw in 1933 Hitler, Mao, and FDR all come to power.

High-End Real Estate Starting to Enter Crash Mode


The high-end market in Connecticut is starting to decline. The hedge fund manager Stanley Druckenmiller bought his estate in 2004 for $23 million. He had it on the market for $31.5 million. The best offer he got was $25 million. He took the money and ran. Smart move! With a real estate tax of about $154,000 annually, looks like a break-even deal after 13 years.

 

The high-end real estate boom is now turning sour. We are looking at property values declining in London, Australia, New Zealand, Hong Kong, New York, and even Miami. The shift will now turn toward MOVABLE assets as capital departs from the fixed asset class.

Canadian Finance Minister Admits Selling Stock but Denies It Was Because He Knew Tax Hikes were Bearish


The Canadian Finance Minister Bill Morneau is refusing to say whether he sold millions of dollars worth of company stock just days before introducing tax changes that may have caused share prices to drop. This type of insider-trading is what politicians always manage to get away with no matter what the country. This dispute is rather interesting. Here the opposition is accusing him of selling the stock because he knew that raising taxes would cause the stock to drop. This is showing that the politicians were well aware of raising taxes would be bearish for the Canadian economy. That’s just OK as long as they get theirs.

Morneau has admitted selling the shares. What he is disputing is why he sold them. “I’m hearing that shares that I sold after I got into office, around the time I got into office, was somehow something inappropriate.

Société Générale Announces Major Reduction in Staff & Branches


 

COMMENT: Mr. Armstrong; Your warning about the European Banks has come to a head today. Société Générale has announced it is closing 300 branches and firing 3450 staff. Everything you have been saying is proving to be correct when nobody else seems to even discuss the matter.

I hope you come back to Paris. A conference here would be very well attended.

PGS

REPLY: Yes, the French bank Société Générale announced a massive staff reduction jobs. The chairman of the board Frederic Oudea, said that the entire banking industry in Europe is facing serious cuts and the withdrawal of Société Générale is preparing for turbulent times that await us beginning in 2018. It is closing about 15% of its branches. It is also selling off individual business units. He was quoted by the London Financial Times:

“I am convinced that the European banking sector is going through a kind of new industrial revolution that is likely to extend over the next decade.”

What we are being called in about by major banks is far more than simply consulting/forecasting. We are dealing with LEGAL issues that will be unfolding with the coming monetary crisis. More and more major concerns need us to address the restructuring of the monetary system they can see is coming.

The tide is turning and it is a hard turn. There is now appearing a German documentary making its debut concerning the mysterious death David Rossi back on March 6th, 2013, who was the communications chief of the Monte dei Paschi di Siena bank. He fell out of his office window and died. His death has never been truly explained whether it was a suicide or a murder. This film exposes his death within the context of the tense situation within the bank and financial system in Europe.

Politicians have been finagling banks for a long time trying to hide the truth about the failed Euro. The filmmakers were interviewed by Deutsche Wirtschafts Nachrichten in which they report that the 2009 takeover of Banca Antonveneta by Monte dei Paschi at an insane price was under the supervision of the Banca d’Italia. The state they have a document with the signature of Mario Draghi at the time approving the deal at an extremely high price. The argument is basically that the absorption of  Banca Antonveneta was similar to the bailout of a failed bank which started the 1931 Banking Crisis.

What you must understand is that to sustain the Euro, which is all about keeping the power in Brussels, there have been massive transfers from the north to the south of Europe. This includes Greece, Italy, and Spain. The entire crisis has been the conversions of their previous national debts to Euro. Then the Euro doubled in values. Southern Europe has paid a vast price that has decimated their economies and driven the unemployment of the youth to as high as 60% in regions. This is the LOST GENERATION all to support the power base in Brussels.

The EU and the ECB have completely failed. This is the entire issue. The bailouts of Southern Europe have created a permanent Euro rescue scheme that has completely failed to help anyone. Greece is the poster-child of the Euro. It is impossible for Greece to ever repay the debts. Italy is still in crisis and Spain is on the verge of watching its budget blow-up starting in 2018.

Europe has entered a phase where it is no longer about trying to create jobs and a sustainable economic growth. This is now all about holding on to power in Brussels. Nobody will address the issues in advance. Thus, we are being called in by banks who see the handwriting on the wall and want to survive the chaos. This is more of a LEGAL restructuring than just consulting.

Illinois Supreme Court Rules Against Pensions


The Illinois Supreme Court has used STRICT CONSTRUCTION to defend the State against State Employee pensions that have been bankrupting the State. Previously, back in 2014, the  Supreme Court ruled that health care benefits provided to state employees were a “permanent benefit” guaranteed by the state constitution. That has led to a complete disaster as healthcare costs have risen out of control thanks to Obamacare, which handed insurance companies more money and a monopoly status that everyone had to have insurance even the y7outh who never used it.

Those health care costs are destroying the fabric of the entire economy pushing pension costs over the top. The Supreme Court is mindful of the disaster he caused with its 2014 ruling and they have been obvious under political pressure to reverse it. They figured a way to do this using STRICT CONSTRUCTION. Therefore, the benefit cannot be greater than what was expressed in the statute. Consequently, they now delivered a six-word ruling on Thanksgiving eve refusing to hear the retirees’ appeal of a state Appellate Court ruling that essentially upheld Mayor Rahm Emanuel’s now-completed, three-year phase-out of retiree health care coverage.

The Supreme Court magically taketh away with one hand what the previous hand gave.“For the city, this is a huge benefit. The amount in government pensions for health care is dropping from $137 million a year to between $7 million and $8 million. Effectively, The courts have now held that you cannot rely on anything the city tells you unless you can prove that person had authority to bind the city.

In December 2015, the court ruled that the city employee pension funds have an obligation to provide and subsidize retiree health care with funds provided by the city, but only at levels outlined in 1983 and 1985 amendments to the state’s pension code. That is the key. The statue only guaranteed subsidy amounts to $55-a-month for police and fire retirees not eligible for Medicare and $21 for those who are. For retirees covered by the Municipal Employees and Laborers pension funds, the guaranteed monthly subsidy amounts to just $25. The explosion in health care insurance which Congress has done nothing about is undermining the pensions and will explode in crisis resulting in civil unrest over the next 5 years.

Courts are put in place by politicians. When ruling will go against the government, judges are word-smiths. They know how to ignore the law when they must. This is all part of how the system collapses. Once the Rule of Law fails, nothing will SURVIVE. It is time to turn out the lights.

Renminbi v the Dollar


The dollar haters have been touting that the Chinese yuan, or otherwise known as the renminbi, would kill the dollar and gold will soar. I have warned that China will take the spotlight as the Financial Capital of the World once again but only after 2032. A real assessment of international capital flows reveals the truth. The Chinese renminbi accounts for only a share of 1.85% share of the international cash flows. In fact, the renminbi’s global share has declined from nearly 2.5% of total global capital flows in 2015, for that was its peak in September 2015 actually on target with the Economic Confidence Model. So despite all the fanfare, China has entered a decline since 2015 – not a rally to kill the dollar.

gold-natl-debt-quantity-of-money

The Beijing government has opened foreign capital markets in recent years. Since 2016, China’s currency has officially been the fifth world currency of the International Monetary Fund alongside the dollar, euro, yen and British pound. That was supposed to kill the dollar. That had zero impact contrary to the dollar haters who concoct endless scenarios to paint the picture of the end of the dollar. One has to wonder why people continue to read these people. They have NEVER been right. They have used the scare-tactics that increasing the money supply would devastate the dollar and create hyperinflation. Another failed scenario. They there was the one about China was going to trade “real” gold, not paper futures as in New York COMEX. That one was supposed to kill the COMEX and everyone would rush to China. Well, that did not happen either. They lack any comprehension of how the world functions and were blind to the fact that by starting with gold trading in yuan, it was a tiny test market for the floating of the yuan itself. It would allow arbitrage between New York and China yielding the next difference being the yuan. Buy gold in China and sell it in New York, and the difference is the currency. So they got that one wrong and the both the COMEX and the dollar managed to survive.

There continues to be a willingness of Chinese policymakers and business leaders to help shape the currency, which is the world’s second-largest economy. For example, the Chinese will soon offer oil contracts in yuan as well and all of this is an indirect way of floating the currency. This willingness on the part of the Chineses government is why it will take time, but their economy will become the biggest in the world after 2032. What makes the US economy the biggest? The American consumer and lower taxes than Europe. When you leave more money in the hands of the people, they spend it creating jobs for everyone. Europe is following Marx. They think the government is better equipped to spend other people’s money. That produces corruption, not economic growth.

As long as China keeps its tax rate low and allows the people to spend the benefits of their labour, then it will continue to rise to displace the West and they are blinded by power and pursue this Hunt forever more Taxes.

Core of climate science is in the real-world data


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ENVIRONMENT

The Government continues to flounder with directionless and inconsistent energy policies, inviting much public commentary, but the science these days scarcely gets a mention.

As we have seen in social policy, the strategy of the left is first to shut down debate and delegitimise any dissent from the position adopted by the left-leaning elements of the media, academia, bureaucracy, the environmental movement and renewable-energy interests.

Lacking the capacity to distinguish science from pseudo-science, the Coalition under Howard effectively acquiesced to the totalitarian-left idea that the science on global warming was settled. It dared not question the assertion that carbon dioxide was causing dangerous global warming for fear that it would be loudly denounced and ridiculed as being in denial about the harmful effects that our emissions of carbon dioxide were supposed to be having on the climate.

In doing so, the Coalition allowed the totalitarian left to define the terms of the debate. But, let us do the impermissible and look at the science behind the question of whether carbon dioxide is causing dangerous global warming.

The scientific method for investigating a new idea is to pose two falsifiable hypotheses: the null hypothesis and the alternative hypothesis. The null hypothesis tests the most obvious explanation; and the alternative hypothesis tests the new theory that the scientist is bringing to bear on the issue.

In the context of global warming, the null hypothesis is that the warming observed since the onset of industrialisation is due to natural causes; the alternative hypothesis is that this warming is due to anthropogenic carbon-dioxide emissions. Both hypotheses must be tested and the objective is to see which of these two hypotheses is incompatible with the data. That is, we are attempting to falsify one or the other or both of the hypotheses (since it is conceivable that there is another human-related cause of the global warming which has not yet been thought of).

A hypothesis can never be proved by this method but it remains viable only as long as it remains consistent with the data. You must not cherry-pick your data; the hypothesis must be consistent with all of the available data. It takes only one instance of the hypothesis being found to be inconsistent with the data for it to be falsified; and this is why the science is never “settled”.

One must begin by assembling all of the available data. The data we are concerned with in this issue are the temperature and atmospheric carbon-dioxide data. The temperature data consists of the meteorological record that has been collected using various instrumental techniques since the 1850s, and also data from various “proxy” sources that enable the temperature record to be inferred. This may be done from such techniques as the measurement of isotope ratios in gas samples extracted from ice cores and seabed cores.

Using these proxy sources of temperature data, scientists have been able to reconstruct the temperature history of the planet going back thousands to hundreds of thousands of years and beyond. Samples collected from ice and seabed cores can also be used to determine the concentrations of carbon dioxide present in the air over those periods.

Figure 1. After Professor Bob Carter (lecture at the 10th International Conference
on Climate Change at the Heartland Institute on June 12, 2015). Air Temperatures
above the Greenland ice cap for the past 10,000 years reconstructed from
ice cores using data from Alley, 2000 (The Younger Dryas cold interval
as viewed from central Greenland. Quaternary Science Reviews 19, 213-226)
(top panel), with a time scale showing years before modern time.
Lower panel shows the carbon-dioxide concentrations of the atmosphere
over the same period from EPICA Dome C ice core.

Figure 1 shows one example of data derived from such proxy sources. The top panel of the figure shows a declining temperature trend over the 8,000-year period from the Holocene Climate Optimum to the modern warm period (left-hand scale). It also shows that this location experienced numerous cycles of warming and cooling that involved temperature changes of the order of two degrees Celsius.

The superimposition of the temperature data from the modern period instrumental record (dotted line and right-hand scale) provide a very appro-ximate context to the late 20th-century warming.

The lower panel shows that the carbon-dioxide concentration over the same period has been consistently increasing. Neither the cooling trend nor the cyclic behaviour of temperature is reflected in the carbon-dioxide record in the lower panel. Therefore carbon dioxide cannot be causing the observed temperature changes. No causation can exist if there is no correlation.

These data clearly show that whatever effect carbon dioxide may have on the temperature, it is far outweighed by other factors: and this falsifies the hypothesis that carbon dioxide causes dangerous global warming. The data show that there is nothing unusual about the current episode of increased global temperature in either its timing or its amplitude, which lies well within the bounds of natural variation.

From these data we cannot ascribe any cause to the current warming event, nor is it necessary to do so. We simply observe that the data are seen to be consistent with the null hypothesis that the modern warming is due to natural causes, and inconsistent with the alternative hypothesis that this warming is due to carbon dioxide. We do not need to understand the details of the operation of the climate system, which so occupies the Intergovernmental Panel on Climate Change (IPCC).

It is important to recognise that no single data set is ideal. All available data sets have their limitations, including those of Figure 1. It is equally important to recognise that all of the available data must be considered. It is not valid to simply disregard data that don’t suit you when there is no satisfactory data set available to provide all the information required on its own.

The data most commonly relied upon in making the case that carbon dioxide is causing dangerous global warming are the data from the instrumental meteorological record. Over the 167-year period of the meteorological record, it is not possible to observe the extent of natural variation in temperature that can be seen in the proxy record of figure 1. Therefore the meteorological record is incapable of being used to test the null hypothesis. This makes the meteorological record the least useful of the data sets that are available for answering the question of whether the warming observed over the last 100 years is due to increased carbon dioxide in the atmosphere. Conclusions based on these data alone are therefore worthless.

The main limitation of the data of Figure 1 is that they are derived from ice cores at a single location and cannot therefore be considered to represent the “global average” temperature that the meteorological record attempts to approximate. This does not mean that these data can be disregarded. There is evidence from a vast range of sources that the warming cycles of Figure 1, among them the Mediaeval Warm Period, The Roman Warm Period, the Minoan Warm Period and the Holocene Climate Optimum, did not occur only at the sites from which the cores were taken but were in fact widespread and probably global. (For a comprehensive discussion of the evidence, see Heaven and Earth. Global Warming: The Missing Science, by Professor Ian Plimer. Available from Freedom Publishing.)

It is probable, however, that the amplitude of the temperature excursions from the baseline in Figure 1 are somewhat larger than would be seen in a global average graph, if such a graph were available, since temperature variations in equatorial regions are usually smaller than temperature variations at higher latitudes. Nevertheless, the data cannot be ignored, because such data provide the best indication we have of the natural variability of temperature and provide the context within which modern-day warming must be considered. In this context, the current warming event appears to be just the latest in a long series of warming and cooling cycles.

The alternative hypothesis is seen to be completely inconsistent with the data and must be rejected since the 8,000-year declining temperature trend occurs in conjunction with a steadily increasing carbon-dioxide trend.

The current meteorological record shows that there has been no statistically significant warming over the past 19 years. This suggests that we may be at the peak of the current warming cycle and that the next temperature change is more likely than not to be the cooling phase of this cycle. This is consistent with the expectation by some astrophysicists that in the next 20 to 30 years we will encounter conditions similar to those of the Little Ice Age that were experienced during the last cooling cycle.

Under those conditions, the global-warming alarmists may come to regret their love affair with wind turbines that stop turning and solar panels which, in colder areas such as those located around Canberra, may become covered with snow if the southern hemisphere experiences a similar cooling to the northern hemisphere. The alarmists may then want to burn all the coal that they can get their hands on. That may become difficult if the Greens are successful in their push to have all coalmines and coal-fired power stations closed down. Do they seriously imagine that these natural climatic cycles have somehow stopped?

Changes in the climate can be expected and it is prudent to prepare for them. But whether it is warming or cooling, our ability to cope with the changes will depend on the availability of cheap and reliable power. It is deadly foolish to base our response to inevitable climate changes upon a theoretical understanding of the way that the climate system operates that is known to be inconsistent with the data and that would result in a complete inability to deal with the cooling that will inevitably come at some time in the future.

The cooling that was experienced in Europe during the Little Ice Age resulted in shorter northern-hemisphere growing seasons, crop failures, starvation, depopulation and the plague, and was far more deadly than any possible warming we might face. (Again, see Plimer, Heaven and Earth.)

Although there is endless reporting and commentary about the danger of global warming, there is no mention of the data supporting the anthropogenic global-warming hypothesis because no such data exist. Discussion always diverts to such matters as modelling, sea-level changes, weather events, reef bleaching, melting ice caps or any of a myriad other phenomena in which changes have been observed.

If you study nature you will always observe change, but these changes must be seen in their proper context. All of these changing phenomena may (or may not) be signs of warming. But signs of warming are precisely what one would expect to see at the peak of a warming cycle and they tell us absolutely nothing about the cause of the warming. To test the hypothesis that it is carbon dioxide that is causing the warming we must turn to carbon dioxide and temperature data: and they show that whatever the cause of the warming is, it is not carbon dioxide, whose warming effect, such as it is, is clearly outweighed by natural factors.

Any attempt to imply that rises in sea level, for example, are a sign that carbon-dioxide emissions are the cause of global warming is bogus science (there are other reasons why sea levels might rise). It is effectively saying that the hypothesis that carbon dioxide is causing global warming is being supported by another hypothesis: that sea-level rises are due to global warming, which is due to carbon dioxide. Or that the bleaching of the Great Barrier Reef is due to the warming of the oceans, which is due to global warming, which is due to carbon dioxide.

You cannot support a hypothesis with another hypothesis or even a series of hypotheses. That is bogus science. The test of the global-warming hypothesis can only be made against the carbon-dioxide and temperature data.

In a similar vein, any attempt to assure us that we must cut emissions because if we add more carbon dioxide to the atmosphere we will reach a “tipping point” that our theory (and our models) show will bring us catastrophe, is also bogus science. Such a line of reasoning is effectively saying: “Don’t take any notice of the data that falsify our global-warming hypothesis. No, we have a theory about how the climate system operates and our understanding of this system is much better at telling how carbon dioxide affects the climate than the data. We know about triggers and tipping points and whatnot, and if we keep adding to the carbon dioxide it will bring catastrophe – just you wait and see.”

That is not science; you cannot support a hypothesis with a theory. The theory is, after all, based on the premise that the hypothesis is true: but the data show that it is false. When vascular plants evolved on earth some 400 million years ago, the carbon-dioxide concentration was more than 10 times the current level, and that did not cause tipping points or runaway global warming; yet we are asked to believe that a mere doubling of carbon dioxide from the very low levels we see at present will bring catastrophe.

Those who claim that carbon dioxide causes dangerous global warming need to produce data that force the rejection of the null hypothesis: that the warming is due to natural causes. This has not been done and, in the absence of those data, the global-warming hypothesis must be regarded as nothing but a theory based on a premise that is known to be false.

For all the costs that “clean” energy policies and high energy prices impose on household, business and national budgets, there can be no possible bene-fit, since the proposition that carbon dioxide causes dangerous global warming is falsified by the data.

One must ask: how can the government have got it so wrong, since the government has access to the best scientific advice available?

The answer to that has two parts. The first, as alluded to earlier, is that the left long ago completed its march through the institutions – including the scientific institutions – so the overwhelming majority of advice to the government conforms to the so-called “consensus” view. The second is that there are too few people entering the ranks of Parliament who understand science and who recognise when they are being fed pseudo-science by those providing the advice.

As the late Professor Bob Carter pointed out, it was not until the election to Parliament of Dr Dennis Jensen as a Liberal Member for the House of Representatives in 2004 that the Liberal Party had anyone with the scientific qualifications and training to discern the pseudo-science from the science and develop an informed approach to the global-warming issue. Dr Jensen displayed a healthy scepticism about the global-warming alarmism in his maiden speech to Parliament.

Unfortunately, Mr Howard did not put him in charge of global-warming policy. Instead, the Liberal Party continued to struggle with the issue while the myths and falsehoods associated with global warming took hold and green ideology took the moral high ground in professing to be intent on saving the planet from “carbon pollution” and the dangerous global warming it was alleged to cause.

Malcolm Turnbull entered Parliament in the same year as Dr Jensen and, in the biggest mistake of his career, Mr Howard in 2007 placed the left-leaning Turnbull in charge of Environment and Water Resources, presumably to give his environment policies some “green credentials”. The opportunity to tackle the global-warming falsehoods and develop a rational energy policy was thereby lost.

The election of Donald Trump to the presidency of the United States and his rejection of the Paris Climate Change Agreement, however, provide the Australian Government with an opportunity to admit its mistake and change direction on global warming and energy policy and thereby give itself a chance of snatching victory from the jaws of defeat at the next election. It needs to find a leader who can tackle this issue head on in the face of the furious opposition that it will encounter from the ABC and the rest of the media, academia, the bureaucracies, and vested interests in the scientific and renewable energy industries.

It will be a tough fight, but it is a fight that can only be fought from within government and not from opposition. It is only when you control the appointments and the purse strings that it is possible to challenge those presenting pseudo-science as evidence and dismiss those who will not properly deal with the scientific objections to the global-warming “consensus” position.

I believe it is the only way this nation can be saved from the high energy costs that are crippling our industries and punishing household budgets. Providing strong support to President Trump on this issue might even begin to turn around this insanity globally and allow the availability of cheap and reliable power to lift underdeveloped nations out of the poverty that currently denies them access to electricity, clean water and sanitation.

Dr Ian Flanigan (retired) obtained a PhD in chemistry at the Research School of Chemistry (ANU).

Middle East Heating Up


An attack on a Mosque in Egypt has left 235 dead. The assault even opened fired on ambulances taking the wounded to the hospital. Meanwhile, the war of words between Saudi Arabia and Iran are heating up. Saudi Prince Mohammad bin Salman compared Iran’s supreme leader Ayatollah Ali Khamenei to Nazi dictator Adolf Hitler. In return, Tehran has responded saying that with regard to the Crown Prince:  “No one in the world and in the international arena gives credit to him because of his immature and weak-minded behavior and remarks.”

Tensions in the Middle East continue to expand.

ECM Turning Point this Weekend


 

The Turning Point on the ECM is this weekend. We do happen to have a Directional Change next week in the Dow with the next turning point due the week of 12/04 and that is followed by the week of 12/18. What is most curious, is the fact that the Dow, Euro, Gold, and Oil all have the same timing targets, with oil showing the week of 12/04 is the strongest.

We are witnessing the global markets beginning to align. This is implying that international expectations are starting to dominate domestic or isolated market fundamentals.

We do not expect this turning point to be a monumental one. What this reflects is the markets are starting to align preparing for 2018 and the beginning of a new round of fun and games.