Another short update and mainly aimed at our Peoplenomics.com readers. I will likely update Peoplenomics for this week an hour or two before the close of trading today.
The reason is that our ChartPack and Aggregate Index are in flux with this break following the EU Exit vote by the Brits (who are voted to get free of the EU mess while they could) have changed in character a good deal.
The first blush number run using our brainamp.xls presents the possibility now of a decline to the 1900 area on the S&P and possibly lower.
As I’m sure you can appreciate, if this develops, it will change much of our long-range outlook so that’s what I’ll be working on this morning. Based on my read of the charts, however (which is none too reliable, and as always I don’t offer trading advice, but I do mention my own trades based on my work from time to time) I don’t see any reason to be in a hurry to buy and I’m inclined to wait until the middle of next week to see how global markets stabilize.
The big issue as the trading day goes on is whether the markets will penetrate our trading indicator. Based on the futures in the pre-open, that is a possibility – and given that I do try to follow my own indicators, this would dictate being cash (which we went to on Thursday) or being outright short, which we are disinclined toward because of a multiplicity of factors being the individual investor’s control, and to some extent, knowledge.
1. The Federal Reserve may be expected to pour on liquidity like there is no tomorrow. Lots of essentially “free money” will be available to the big boys in an effort to continue the illusion into the election period that all is rosy with America.
2. The price of gold in the pre-open has jumped to a pretty healthy level up %65 an ounce when I check last. The problem for the investor is deciding what is driving gold’s price. Surely, one possibility is the matter of the Fed effectively watering down the purchasing power of money (so that it takes more of it to buy the same goods and services). But there’s another possibility as well, namely the flight to safety out of the Euro which is trading negatively this morning, as well. Priced in the US< the EuroStox 50 was down nearly 9% but this doesn’t tell us much about how other currencies will ripple out in the coming week, or so.
3. The Globalists are are hardy (and arguably foolhardy) group. Just because the People have Spoken in the UK doesn’t mean that David Cameron and the globalists will give up on the One Worlder dream. The fact that Cameron has quit could be seen as an act of conscience on the one hand, or a move to get into position to attempt to block the will of the people as Article 50 of the EU is put to a functional test.
Now, let’s take a look at Article 50 of the European Parliament in summary form and see if we can find angles for the pro-globalists to work:
The right of a Member State to withdraw from the European Union was introduced for the first time with the Lisbon Treaty; the possibility of withdrawal was highly controversial before that.
Article 50 TEU does not set down any substantive conditions for a Member State to be able to exercise its right to withdraw, rather it includes only procedural requirements.
It provides for the negotiation of a withdrawal agreement between the EU and the withdrawing state, defining in particular the latter’s future relationship with the Union.
If no agreement is concluded within two years, that state’s membership ends automatically, unless the European Council and the Member State concerned decide jointly to extend this period.
The legal consequence of a withdrawal from the EU is the end of the application of the EU Treaties (and the Protocols thereto) in the state concerned from that point on.
EU law ceases to apply in the withdrawing state,although any national acts adopted in implementation or transposition of EU law would remain valid until the national authorities decide to amend or repeal them. A withdrawal agreement would need to address the phasing-out of EU financial programmes and other EU norms.
Experts agree that in order to replace EU law, specifically in any field of exclusive EU competence, the withdrawing state would need to enact substantial new legislation and that, in any case, complete isolation of the withdrawing state from the effects of the EU acquis would be impossible if there is to be a future relationship between former Member State and the EU.
Furthermore, a withdrawal agreement could contain provisions on the transitional application of EU rules, in particular with regard to rights deriving from EU citizenship and to other rights deriving from EU law, which would otherwise extinguish with the withdrawal.”
Now, let’s go through some of the ways that the Globalists could subvert the will of the People and still remain in compliance with the EU Article 50 withdrawal.
First, and foremost, someone who worked tirelessly against BREXIT could be appointed to “negotiate with the EU.”
Once that is done, it is clear that there is an easy route around the two year limit to exit by simply having the UK negotiator (if they are globalist and crooked, which wouldn’t be a shocker would it?) simply “mutually agreed” that two years time was not enough.
Another highlighted are shows how the EU would hold that until a nation replaced EU regulations, it would hold that EU laws still apply. Hence, even if the UK decided to close its borders to the Middle East invasion, it would be argued by the EU that they can’t do that until there’s a new UK law on the books addressing the area of law formerly held by the EU.
And then we have the money issues: The EU isn’t exactly making Britain rich, but no doubt, given the shaky finances of the EU, this cash flow deal will be a biggy.
The most worrisome one of the Article 50 provisions is the one covering “rights of EU citizens.”
This could be used by the globalists to literally flood Europe with more non-British born persons over a two year period of negotiations.
So unless the UK immediately passes tough immigration laws that would slam the door on the globalist-backed invasion of Middle Eastern countries, it would seem likely that a “rejoin the EU or cancel the BREXIT would be the next predictable things to be on the lookout for.
In the meantime, as I said, I look for the globalists to play to the bleeding heart crowd and complete the transition of England/Scotland into an extension ofo the Middle East, as it almost became in the Middle Ages.
And from the longer view of historical conspiracies, a fine case could be made that the whole point of the European Union’s formation was to steam Europe from its Judeo-Christian roots and set the stage for the Muslim re-conquest.
Which, in case you haven’t noticed, let by the left, is also well underway here.
A bit more deep thinking to come, but like I said, we shall see how our indicators look at the end of the day today. Expect President Useless to speak up on this, as well as the sit-in fools from the Hill. That and a ton of free money for the big players will assure the usual suspects will get rich while the rest of us get screwed.
Some things just never change and Machiavelli would be proud.
The one fly remaining for the globalists is the US Supremes on Thursday said Obama didn’t have carte blanche to make up immigration plans here, but do you really think that will be rolled back and damage undone? Hahahaha.
Seriously? Obama and Hillary are doing the same think here except instead of Londonstan, we will have New Yorkstan and Chicagostan, and the state of Quintanafornia… sheesh.
Say, Need Another Bummer?
This morning’s Durable Goods press release from Census:
New orders for manufactured durable goods in May decreased $5.3 billion or 2.2 percent to $230.7 billion, the U.S. Census Bureau announced today. This decrease, down following two consecutive monthly increases, followed a 3.3 percent April increase. Excluding transportation, new orders decreased 0.3 percent. Excluding defense, new orders decreased 0.9 percent. Transportation equipment, also down following two consecutive monthly increases, led the decrease, $4.8 billion or 5.6 percent to $81.9 billion.
Shipments of manufactured durable goods in May, down three of the last four months, decreased $0.5 billion or 0.2 percent to $231.7 billion. This followed a 0.4 percent April increase.
Transportation equipment, also down three of the last four months, led the decrease, $0.4 billion or 0.5 percent to $80.0 billion.
Unfilled orders for manufactured durable goods in May, up four of the last five months, increased $2.0 billion or 0.2 percent to $1,139.4 billion. This followed a 0.6 percent April increase.
Transportation equipment, up three consecutive months, led the increase, $1.9 billion or 0.2 percent to $785.2 billion.
This won’t add much gas to the burning of the equities this morning, but it’s not exactly a fire extinguisher, either.
Write when you get rich,