Here is the longer term bearish 4PT we've been talking about lately:




Both breaking it to the upside and respecting it should result in a strong and sustained move in the given direction

I guess 5% moves in comms, especially grains, is going to be the norm going forward? Sure looks like it. Imagine tossing in the occasional 10% day. I think they should raise those lock limits so they can be ready when this really gets moving... That DBC setup of the KZ at key line is now up over $2 so far, closing in on that over two year high. Heating oil is just exploding to new highs for the entire move. Wow.

Okay, no one was here but me, so I'm taking off now. Get ready for an exciting week coming up. I think they want to run this until the year end, to boost up those bonuses as much as possible. I'd think they'd want that 1330 area by month end. But, it does what it does, and all I can do is look for setups as it does it.

Sure wish I could have gotten a deal on gold before it heads to perhaps $5,000-$10,000. Crude, well, everyone is saying $100, but I see over $200 not too long from now. I don't predict anything, I just follow trends. I only say the above based on logical conclusions and what seems to me to be likely outcomes of complete and utter debasement of fiat currencies that only seems to be getting started. If they do what it looks like they plan to do 'long term' I could see crude at well over $1,000. Remember, Zimbabwe $100 trillion dollar notes are just a few bucks on eBay, get 'em while they're hot...

Last thought to better explain the above. Here's what the conventional thinking is. Crude and the comms start to rise. Pump gas rises and all this puts a big crimp in the economy, and the prices drop due to the dropping demand of a weakening economy. Crude can never get to $200 (or $1,000) because demand will drop tremendously way before then. Now, here's what the conventional thinkers are missing.

Money printing causes a repricing of comms higher, and the excess cash flows into hard assets, giving the double whammy to the rise. Once this trickles down (and pump gas and grocery shelf food prices are the two biggest ways I feel this kills the average American), the economy will slow rapidly. The FED will respond with more money printing, which not only steals whatever tiny little bit is left of your cash savings, it will reprice the comms higher, and feed excess cash into hard assets, with even more vigor, as the debasement is obvious. Demand drops, and prices rocket higher.

This is the acceleration phase of hyperinflation. Wages don't keep up, savings are destroyed, the economy gets a lot worse, and the FED prints more money. The loop is complete, and it feeds on itself. This is what has begun, in my opinion, and nothing in heaven or on earth can stop it. It reminds me of an old TV commercial, which showed a guy on a merry-go-round type thing, and he was saying 'I have to work longer, to make more money, to buy more cocaine, so I can work longer, to make more money, so I can...' faster and faster, until he eventually explodes I would guess.

That's our system right now, and they've gone too far to stop it, change it, or ever admit they were wrong. They are going to blow us all up, and we are all going to stand by and watch. Mark my words. And although this is just one man's opinion and nothing more, you know my track record on reading things...

Have a great weekend.