QUESTION:

Hello Mr. Armstrong,

I read your blog every day. Thank you but i’m having trouble figuring out where to place my money moving forward. Cash, the markets, the banks, gold…. It feels like you are saying cash is the place to be right now but maybe i have a difficult time comprehending all that is going on

Where there be at time whereby you direct or inform where to place our money? or is that up to us to decide based on the trend you posts?

Thank you

ANSWER: No. I have been saying right now we are still in the deflationary spiral and that is when CASH IS KING. This naturally depends upon where you are. The first quarter here may off the extremes for the year in most markets. So you want to be in a position to begin to come out of CASH for when CONFIDENCE begins to decline in GOVERNMENT (not just central banks since the majority do not even understand what they are), then we should begin to see the staging game prepare for what looks like the 2017-2020 move. Then you may want to be diversified with equities with good capitalization, some spec-stocks, gold, silver, and real estate (greatly dependent on area).

From a TIMING perspective, this is the Great Alignment. We will be yelling loudly when the timing is right. Edging into this will begin this year. But when will this whole thing begin to unravel? That appears to be during the first half of 2017.

Keep in mind that if you read this blog, you are already in a position where you have lost CONFIDENCE in government. Do not judge the world based upon your view. What counts is the majority view and they still THINK government is in control and is actually there to help them. When they start to see this basic assumption is wrong, then everything changes.

The younger generation already has lost faith in government. It is the new voters pouring out for Sanders and Trump against the establishment. They see Social Security in the States as a TAX, not as a plan for their retirement. However, this same segment of society is too young to remember silver coinage. They do not have the same view of precious metal. Some funny video have appears offering a 10 ounce silver bar or a bar of chocolate. The vast majority of the people on the street take the chocolate. They are not on the same page. They could not even sell a 10 ounce silver bar for 99 cents. Not everyone sees the world with the same way.

Christine Lagarde does not want to leave the Troika ruling the world from the IMF which has  become an unelected dictatorship. Once these type of people get a taste of awesome power and the press lick the ground upon which they walk, they just never want to leave. Lagarde has “offered” to serve another term and he buddy Obama will anoint her, which is the word on the street.

QUESTION: Marty, at the Conference you said we could conclude this in the first quarter if we get the alignment. It does not look like we will get the alignment since gold is up and the Dow is down. This is why you have been saying this looked like it was postponing into 2017?

ANSWER: Yes. We could have concluded this here in 2016, but the reversals determine the trend. Trend is ALWAYS defined by the Bullish and the Bearish Reversals. Those who expect forecasts to be one-sided opinions are not traders and will typically lose their shirt as 90% of people who try to trade do. A real trader MUST know where he is right and where he is wrong at all times since the market is the only thing that is ever infallible. Those who expect one-sided forecasts never survive. Those who do not grasp why we have Bullish and Bearish Reversals defining the trend claiming that is why we are always right are blind fools. You cannot elect both the Bearish and the Bullish on the same day. These type of people will be separated from their money real fast in the coming slingshot because they are incapable of understanding how markets even move. This is a learning experience and when there is nothing left to learn, it is time to die. So those who are incapable of learning, well I suppose they are just a waste of humanity that drives the rest of us in awe as we watch their stupidity repeat over and over again.

True, 2016 would be five years down from the 2011 high in gold. But because of the split with 2012 being the highest annual closing, this has left the door open to the conclusion being pushed off into 2017. If we got the final low for gold in the first quarter, then a low in the Dow would be the alignment that confidence in government would collapse now. But when the Dow closed year-end lower and gold closed above our number, I stated gold was not as weak as it appeared. It then began electing the Bullish Reversals, not the Bearish, and that gave us the indication we would get a rally BETWEEN the Benchmarks at a very minimum. This was only reinforced by the closing in the euro where we warned the euro should rise to 113 at minimum and 116 optimal. The decline in the dollar should have helped gold, but it will also intensify the deflation in Europe and help to push their banking system over the cliff as is happening right now.

The talk around the street is that the moves are due to a lack of confidence in general that central banks can control the economy. Well, that’s nice, for they never could. But this is looking very dicey, to say the least. That is why we have to just following the reversals and the timing. We have heard every excuse to explain the trend from the stock market following oil to gold rallying because the Fed will not raise rates. Honestly, this all sounds like gibberish.

The markets are preparing for a slingshot move that will make most people’s nose bleeds. Gold has reached so far the 1263 level so there is still room on the upside yet before encountering resistance. The two key numbers to watch now are the 1309 and 1363 levels. Pay attention to the Dow. If we can close below 15875 we have a shot of finally breaking last year’s low.

Also, pay attention to silver. It has not kept pace with gold, showing the bulk of the gold move has been short-covering. Here we need a closing for the week above 1643 to be comparable with gold just above the 1209 number. We also have a Weekly Bullish at 1544. Silver is begrudgingly following which does not speak well for the long-term sustainability here.

So in the end, we will set the stage for all this craziness moving to extremes. Then ask yourself this question? Are you willing to hand your money to government and ask them to hold it for you? If we are concerned about banks, and we are concerned about government, then there is not much life but to move to the private sector. So when rates go negative, a 1% yield in a blue-chip stock looks like heaven. That is the shift on the horizon from public to private. We have to get the weak-minded running into the arms of government before the markets will slaughter them for their stupidity.