Posted Apr 23, 2013 by Martin Armstrong
I can think of nothing more than the single greatest nonsense that has frustrated me for decades – the MYTH of the ONE-SIDED TRADE.
As I have stated at seminars around the world, there is this prevailing myth of some HUGE short position that forces the market down. In gold, there is the mythical short positions of J.P. Morgan. I am by no means a mouthpiece of the bankers. I have stood my ground and taken every arrow they have shot at me and I am still standing.
Keep in mind that if I SOLD 100,000 contracts of gold, I can ONLY do that if someone bought. Therefore, at every instant there is a sale, the equilibrium is balanced. This is why there has never been a single investigation that EVER found the mythical huge short position. It does not exist. The source of EVERY crash is contained within the CONFIDENCE of each side – nothing more. What makes the crash is scaring the longs – it is the process of shaking the tree as I put it. I have been called into just about every crisis since the Franklin National Bank collapse during the 1970s. NEVER has there EVER been some huge short position – NEVER!!!!!!!!
Cycles are the key to everything. It is how light moves. You get a different effect depending upon the WAVELENGTH at that moment. Change that factor, and you get something entirely different from Xrays to Microwaves – it is still all the same core wave – electro-magnetic. Here is a visual representation of how sand will form patterns on a metal plate that change with the frequency of the sound. This is called Cymatics, which is taken from the Greek κῦμα meaning “wave”.
We are living still in the Dark Ages. We have realized that the earth is no longer flat. But we have NOT made it to that place of realization that we too change our patterns according to our sense of TIME – cycles. Perhaps soon we will take that next step in the evolutionary process and create a world where we have learned from our past.
We can do this. It does not take the majority to shift the direction of society. Surprisingly, it is accomplished with less than 10%. Even during the Russian Revolution, the major of the people really did not understand what they were revolting about, yet the small minority seized control with their support and installed their agenda. It is what Stanley Milgram called – Obedience to Authority – people do things because they are told to even when it goes against common sense.
It is the VOLATILITY that binds the business cycle. It PREVENTS the business cycle from moving into what would be the White Earth Effect – where the cycle collapses and life is extinguished. It is the moving of the majority from bullish to bearish and back from bearish to bullish that creates the highs and lows. There can never be a one-sided position. If there is a huge short position, that means it was offset by an equal and opposite long position. What changes the market is CONFIDENCE. Will all those people who bought gold just hold? Holding physical gold coins is one thing. Leveraged positions – sorry but that has its limits. Eventually losses will FORCE liquidation. If the Hunt Brothers had HUGE long positions that were “real” and were intent upon holding until silver hit $100, then why under this same theory did silver crash?
This not about trying to talk markets up or down. This is the TRUTH about a reality that we will have to face one of these days. The sooner we do, the better for society for we can then move to the next level in the game of life and the evolution of society.