Re: Update on THE Low in Gold - Day Trading this Week - Points to Ponder and My Take on them
November 27, 2016
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Martin Armstrong - Update on THE Low in Gold
According to Martin Armstrong (MA or Marty) there seems to be more and more evidence that we will see Gold break the $1,000 level before the end of the 1st Quarter of 2017 and that THE low will not be delayed until 2018. Regardless and to be sure, we still have to see the year-end Gold numbers to be sure. The next four (4) months will be a crucial time period and very important for those of us who want to take advantage of THE low in Gold in order to enrich ourselves as much as possible. Therefore we have to be vigilant right now and read the Socrates (SOC) signals and Marty’s interpretation thereof.
Day Trading this Week
Talking about the SOC signals, we did not receive any signals from the SOC Trader Level 1.0 for Thursday and Friday or for this coming week. Consequently, without those signals we will not Day Trade this week unless we receive forecasts and signals later on in the week. I am hoping that the reason I did not receive the SOC forecasts and signals is because, they are too busy preparing the launch of 2.0 - - - fingers crossed!
Points to Ponder & My Take on Them
1) India – the US Dollar and Gold
MA Blog Friday November 25: “India is into chaos, stores are closing and US dollars are soaring in premiums on the street. There is a serious risk that the government has shaken the confidence of the people to such a degree, that they trust the US dollar more than their own currency.”; and
Gold: There are indications that the Government in India is considering imposing limits on gold holdings by individuals. The rationale being that Government now feels compelled to fight a war against black money. It is felt that if Government announces such a limit that this will be a huge long-term negative for gold.
Gold will eventually go much higher and I believe that there will not be a huge impact on the price of Gold in the long-term if or when India imposed limits. Gold is in the DNA of the people in India and Government decreeing that individuals will be limited to owning gold will drive them to buy even more Gold in an illegal Underground Market. On top of that, when there is chaos, to protect yourself from uncertainty you buy more Gold and therefore, I look at both of these happenings as - - positives and not negatives.
2) The following overview of the WEC 2016 was posted on Friday November 18 by a fellow WEC 2016 attendee and a founder of a Wealth Management firm. It is a well written piece and I felt it might be of interest to you:
“The three most important takeaways were: we’re on the right track, most people using the Socrates system as a standalone are still challenged, and Socrates is a very precise tool best used by skilled hands. Here’s a bullet-point summary:
- We’re on the right track:
1) Marty’s major forecasts around currency allocation, gold, stocks and government bonds have been exceptionally accurate, so our Client portfolios are well-positioned, and ready for what lies ahead
2) Trump’s election does NOT change the bigger picture long-term trend directions, but he may help to steepen/accelerate a few of them, like:
- capital inflows to the $USD, stocks, etc. by virtue of proposed reductions in corporate taxation
- rising bond yields based on promises of massive infrastructure spending that will need to be financed with additional debt…pushing the U.S. closer to the crest of the slippery slope
3) The fact that Trump’s election and some of his early Cabinet appointments have shaken things up in virtually every major Establishment institution (EU, UN, MSM, the Fed, et al) probably means he’s headed in the right direction. In particular, the MSM snowflakes are proving why their trust ratings are bunched up down around their collective ankles
4) I met conference attendees from about 10 different countries, and a clear theme emerged: very successful non-mainstream people have become successful mostly because they understand that being non-mainstream is not “extreme.” The masses are - by definition – wrong at the extremes, but they create the trend in between. Being an independent thinker means that you are willing and able to “ride the herd without becoming one of them,” and you don’t really care at all about being popular
- Most people who are using Socrates as a standalone platform are having trouble [Read my Point 3 below]:
1) Marty’s ECM and Socrates works very effectively when used properly, but it’s a new and different framework with its own language
2) Socrates does not prevent people from making foolish investment decisions based on their own biases and psychological weaknesses
3) The people who are using Socrates unsuccessfully have some common traits: insufficient diversification, undisciplined trade execution, hyper-active trading frequency, and very sloppy risk management
- Socrates is a very precise tool best used by skilled hands. As one of Marty’s team explained it, a wise parent wouldn’t give a sniper rifle to a child…because they can hurt themselves and others without the proper training and maturity. Specifically:
1) Socrates is NOT supposed to be used as a day-trading platform
2) Socrates should be used in tandem with an existing disciplined framework, including proper diversification, disciplined trade execution, moderate trading frequency, and with very disciplined risk management in place
3) Our managers will utilize Socrates to make sure Client portfolios:
- Are on the right side of every major currency move
- Are over-weighted in asset classes that have the best risk : reward potential
- Avoid major losses from high-risk asset classes, and possibly benefit by shorting these asset classes
Our team is looking forward to hearing Marty again at Michael Campbell's upcoming World Outlook Financial Conference, as well as sharing our insights with attendees during the Personal Finance Workshops.
Patience and discipline are accretive to your wealth, health and happiness, so focus on these.”
Well Written and all so true and to the point!
3) As the writer in Point 2 above pointed out: “Most people who are using Socrates as a standalone platform are having trouble, it’s a new and different framework with its own language and a very precise tool best used by skilled hands.”
Personally, I have been told by many investors that they are confused after reading the Martin Armstrong Blogs and yesterday afternoon I had two more calls from investors who read the Friday November 25 MA Blog on “Using Reversals” and “the Fractal Nature of Trading” which they said left them totally confused.
Yes, that certainly is problematic and I understand the frustrations. It is my view that the reason this is so is that many of the Martin Armstrong Blogs are only clear to investors who have put in the time and studied them for a long time and even years. Most of the presentations at WEC 2016 by Marty went over the heads of many attendees and especially over the heads of the Newbies. Only those who had been to other PEI conferences were the ones skilled enough to understand.
Heck, I have studied Marty and SOC since 1985 and I feel I am skilled but, there were still areas in his presentations I had trouble understanding and had to question MA about them before I got it.
My main take-away from this is: If you have a job and you cannot afford to spend the time or if you are not prepared to spend the time studying SOC and MA’s interpretation then leave it to Wealth Managers or me because, we are spending our time interpreting SOC.
Yes, at Mining Interactive our Analytic Team consistently spends the time to the benefit of our Paid-for subscribers.
You cannot predict the future without studying and relying on “Socrates” the Artificial Intelligent computer and arm ourselves with its Market-Driven Price Forecasts.
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