Things seem to be holding up so far. /YM back to 25,550 and also /RTY 1,700 along with 2,845 on /ES and 7,440 on /NQ so shorting the laggard but favoring the /YMshort still.
/RB testing $2.17 makes a nice short into the weekend but might push higher first.
/KC back to $109.50 so I like that long and that's $121.20 on /KCN9
/SI below $15.40 so long there if it goes back over (only) with very tight stops below.
The Dow fell back to 25,300 for a gain of $1,250 per contract, the Russell (/RTY) fell to 1,655 for a gain of $2,250 per contract, the S&P (/ES) fell to 2,800 for a gain of $900 per contract, the Nasdaq (/NQ) fell to 7,200, for a gain of $4,800 per contract, Gasoline (/RB) fell to $2.11 for a gain of $2,520 per contract, Coffee (/KC) rose to $112.50 for a gain of $1,125 per contract and Silver (/SI) flew up to $15.55 for a gain of $7,500 per contract.
That day's report was certainly worth $3, wasn't it? Of course, those trades are usually exclusive to our PSW Chat Members but, once in a while, when we feel strongly about our positions, we share the wealth with our Report Readers. If you want to learn how to trade the Futures, join us for our weekly Live Trading Webinars, which are usually Wednesday's at 1pm.
Today is the last day of the month so we're looking for bounces off of all those bottoms and you can play for the bounces (with very tight stops below), which are 20% of the drop as a weak bounce and 40% of the drop as a strong bounce where failing the weak bounce is bearish and the strong bounce has to be taken back in less than 48 hours, or that's bearish too.
That means, for example, the 250-point drop on the Dow (/YM) should get a 50-point bounce, back to 25,350 just to be considered a weak recovery and 25,400 is the strong bounce line. Anything less than a weak bounce today is a strong indication that we're not done selling off – especially on a window-dressing day like today. On the volatile Russell (/RTY), we fell 45 points so we'll round up to look for 10-point bounces to 1,665 (weak) and 1,675 (strong) but we need a stronger Dollar for the Russell to get it in gear.
Unfortunately, we're not getting it this morning as the Bank of Japan, although maintaining their 0% Rate "Policy" has widened the range around it to let the market set the price, which will be higher than 0%. It's not much but, for the BOJ, that's considered a hawkish move as the era of FREE MONEY may be finally drawing to a close. Although the BOJ officially says they are buying 80 TRILLION YEN worth of bonds ($720Bn), they actually "only" bought 43Tn ($387Bn) as demand for Japanese paper – even at 0% – is strong throughout Asia.
Japan itself is over 1.2 Quadrillion Yen in debt (1,200,000,000,000,000), about 250% of their GDP which means if Japan were paying just 2% interest on it's debt, it would cost 5% of their entire GDP just to make the interest payments. There is no country on the planet worse off than Japan but there are lots of countries that are over 100% of their GDP in debt, including the United states just one year after this chart was printed.
China may seem like they are in great shape at "just" $2Tn in debt but their deficit is expanding at about $1Tn per year, which is 10% of their GDP as they try to maintain the country's 7% growth rate so the government looks good (aren't dictatorships ridiculous?). That means China spends more money than they get in growth, as does the US, who is spending over $1.1Tn more than we take in thanks to idiotic tax cuts and our growth, even at 3% (best annualized case) is just $600Bn so $500Bn is being thrown down the tubes – just to make Trump look good.
The odd thing is that countries like Italy, Spain, Brazil, Portugal, Argentina and, of course, Greece are imploding on their debt load yet we act as if ours is fine and will never come back to bite us. Those are the famous last words of many former empires. There's currently this fiction that, as long as all the World's Central Banksters keep printing money and ignoring each other's debts and buying each others' bonds – this can continue forever as we go 300%, 400% and 500% in debt and it won't matter because "everybody's doing it."
Does that seem ridiculous to you? That's because it is. This kind of behavoir is not sustainable in the long run and is more like a mutual suicide pact than a sound economic policy. We're even watching some of these countries die yet we are "staying the course" and piling on more and more debt.
The only people this policy is good for are the Banksters and, numerous times, we've pointed out that lackeys from Goldman Sachs (GS), JP Morgan (JPM) and other major banks are ensconced in positions of power in Central Banks throughout the World and they are the people setting these insane policies that are impoverishing nations for the benefit of the Top 1%.
When the debt becomes unmanageable there is inevitably a call to "privatize" assets, which is a fancy way of saying "give our people's land to rich people for 10 cents on the Dollar." Thanks to legislation that was passed on Dec 4th in our own country, Trump "scaled back" millions of acres of National Park land and has already, in just 6 months, "Tens of millions of acres of other public lands will be sold to the oil and gas industry under the Trump administration." Of course "sold" is a funny word, as it's mostly being GIVEN away as claim stakes, in which the Government expects to derive it's revenues from the eventual taxes paid from the profits made off the land that used to belong to the American people.
“President Trump and Secretary Zinke are responsible for the single largest rollback of public lands protections in U.S. history, period,” said Chris Saeger, executive director of the Western Values Project. “This is a historic point in which Congress, despite the overwhelming public outcry, rolled over like a dog for special interests in allowing the unlawful, unilateral action by the President.”
Clearly we are sinking into the abyss but fear not investors, we have Apple (AAPL) earnings this evening and they should be a bright spot on the market so it's a good time to play those bounce line and we'll see what we get but make sure you take quick profits – as these bounces may be all we end up with!