Monday, July 4, 2011

Russell- No Dollar collapse coming anytime soon

Currently, the Averages had every opportunity to break below their last secondary lows. The Averages refused to break down -- instead both Industrials and Transports rallied above their preceding June highs. I took this action to be bullish, and with a bow to the advertisers of "The dollar crash," (who I discussed above), I can say that a dollar crash is not going to occur any time in the near future. If the crash was near, the D-J Averages, in their uncanny wisdom, would have sensed it and given us the news by breaking below their June lows.

So is it really a bull market? I think it is. Then shouldn't we be up to our necks in stocks? I choose not to be, mainly because I don't like the values. Dividend yields are low in my estimate, and I'm in no hurry to rush into the arms of an anxious and waiting Wall Street.

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  1. I don't have my paperwork in front of me, but I do believe we will see, at least nominally, a new low before the ball drops on 12/31/11. A collapse? Nah, just a nominal new low. Besides, noone should want a collapse. Our PHYZZ can appreciate without the dollar going to hell.

  2. ...if we enter Libya(2 weeks max) we will see a major decline in the $$. War is now used as a distraction to bring about major economic and societal change/degradation. What good has come from the Iraq/Afgan war...? What good has come from any war since WWII? It's all a distraction... the dollar is toast and the bigger the distraction the bigger the steps will be to bring about this end.

  3. I though Will and Kate are used for distracting now.

  4. How much longer is the green, up arrow fairy dust going to be snorted by the stock market?

    I'm trying to gauge the time period when I'll be buying a mass of PUTs.

  5. this market will do what TPTB want it is controlled by them for a wise man once said..yous pay your money and takes yours chances...
    you can't beat them or join we don't play...even if you make a ton of funny money ...what with taxes going to go up still phyzz is the only answer...good luck...

  6. Could it be Lindsey Williams is right, that they are just going to prop the system up until they can finish there agenda in the Middle East?

    Saudi Arabia bought some time buying off its people with $160 Billion in financial gifts to its people. These CIA backed revolutions clearly are not going well.

    The only explanation I can think of why they don't collapse it is just that, can't do it until the Middle East agenda is complete.

  7. I have been reading this blog for some time. I am trying to learn as much as I can. Of course I buy phyzz as often as I can.
    I am going to put forth a theory and I am eager to hear what you think. I am not so sure about the collapse of the dollar. I think they are propping up the system long enough to allow their "friends" to continue to loot it. I think the next step will be to roll out a new currency. This currency may be U.S. issued or maybe it a global currency. Im not sure. A total collapse in the dollar makes no sense for those in power. Adverting it with a new currency does.

    What do you think?

  8. @Richard,

    think of it psychologically. which americans would want a new currency (it will be the "redback", just watch) to replace the greenback at the current economic state? nobody. that's why it has to get pretty bad with the USD before they can replace it without inciting revolution in the streets.

  9. @Richard - yea probably. I think they are just keeping things rolling as long as they can plugging holes with bailouts. IIt's kind of working. IMO The only thing that will eventually put a stop on the whole thing would be inflation... OR perhaps a collapse of the Euro - that would change anything. If the fed is continually forced to monetized the debt - which I think they will - we will eventually have very high and unpleasant inflation rates in the US.

  10. @John- Thanks and I agree. But I think a total collapse brings about true American justice dished out by the avg citizen. Things must get bad for "us" to willingly accept a new currency but not a collapse.

    @ZEP Thanks for the reply. High inflation is on its way. I look back to the 70's/Carter era and many things seem to be repeating. Except the high interest rates. But that to will come

  11. Don't worry, a million dollar salary will be worth $100k now, in about 10-15 years. As for who will be paying their employees a million, well I think you all know the answer!

    The only real thing changing will be lower real salaries for most of us, I doubt any real mega ball shattering shit will hit the fan! It does mean anything real will go up in value. Maybe all nice desirable real estate will be owned and traded amongst rich people, propping up its price so we cannot afford it.

  12. US Steel looks ready to run,

    not a bad pick for a flyer

    especially if insiders know somethings up

    thats an IF

  13. For those that missed this video "The Day The Dollar Died"... here you go.

    The Revolution Begins July 4th 2011

    Happy 4th of July SGS and blogspot family.

    and I leave you with this...

    As MLK Jr. said...

    "Cowardice asks the question, 'is it safe?'. Expediency asks the question, 'is it politic?'. Vanity asks the question, 'is it poplular?'. But conscience asks the question, 'is it right?'. And there comes a time when one must take a position that is neither safe, nor politic, nor popular, but he must do it because conscience tell him it is right."

  14. Sprotts PSLV premium went up 2% today and it was not traded i.e. its value is the same as friday's close? Yet silver went up 1% today!!! Is there something fishy going on here? Surely the premium should have gone down by 1%? What am I missing here?

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  18. "into the arms of an anxious and waiting Wall Street" indeed!
    Come on in, the waters fine! Bennie has your back.
    What I absolutely do not understand is how anyone can think the economic drivers for this system can continue with the main driver(lower interest rates) now residing in the basement. Theoretically any number can be divided to infinity. That is what Bennie is doing now, as he moves down the yield curve. But realistically, printing and buying any failure is all that is left. This is Bennie's "plan"! Now with the political will absent (Just as I knew it would be) to cap the spending, and all on board to head further down the wrong road, we see all the positive spin ads from Wall Street once again.
    Hit us with negatives. Allow some market weakness/sentiment. Then when the optimum time arrives (nice short position built up) rally the market, and use those shorts and Bennie's Dollars to drive the market higher. This really is all so predictable long term. It is the shorter term twists and turns that sometime prove hard to predict.