Posted Jan 1, 2016 by Martin Armstrong
As we close 2015 and begin a new year, the markets generally closed flat to neutral with a warning that as we approach the political year from hell (2017) that this is by no means going to be a walk through the park. We are more likely than not going to see some trends conclude in 2016 and others perform a false move to scare the hell out of everyone. Nevertheless, the stars may not be aligning, but the markets appear to be setting the stage to align for the BIG SHIFT.
What does the BIG SHIFT mean? It means that as we face a meltdown in socialism, which has taken hold of western governments and destroyed our underlying democratic foundations, ALL assets must prepare for the HEDGE against government.
Relationships are NEVER constant, yet the TV analysts tout fixed concepts that people believe. At first, many will buy or sell based upon such unfounded beliefs and assumptions. When we examine them in detail, they fall to the ground into dust.
Europe is operating under a dictatorship and has lost any possible right to exercise a democratic process to remove the three members of the Troika since not a single one stands for any election. Lagarde is the head of the IMF, yet Europeans did not appoint her exclusively. She was a personal friend of Obama. Draghi is ex-Goldman Sachs. Once a member of Goldman, you never leave. The EU Parliament has no validity since the Commission is not bound by their vote. The people of European nations have absolutely no means to reclaim their sovereignty by any method other than force. To prevent that, the EU Commission wants to create its own army.
As we hurl through time and space toward 2017, we will come to realize that this will indeed be the year from political hell. Not only will a new president take office in the USA, but we are looking at France, Germany, and Britain also going nuts.
The $40 level becomes important resistance now in oil. The Dow closing lower than 2014 warns that there is a risk of a retest of the lows, as was the case with the S&P 500 and the NASDAQ which made a new high at last but with little follow-through. This warns we may see a retest of support and a slingshot move remains possible. Silver closed bearish and gold only neutral.
It appears everything lining up for a very dramatic move between 2017 and 2020. So grab your socks, this one could be very crazy and wild to say the least.