Be Forewarned

Michael Lewitt’s latest letter contributed a list of absurdities. 

Anyone questioning whether financial markets are in a bubble should consider what we have witnessed in 2017:  

Excerpts... 


• A painting (which may be fake) sold for $450 million.
• Bitcoin BTCUSD, +8.26%  (which may be worthless) soared from $952 to over $11,000.
• The Bank of Japan and the European Central Bank bought $2 trillion of assets.
• Global debt rose above $225 trillion to more than 324% of global GDP.
• U.S. corporations sold a record $1.75 trillion in bonds.
• European high-yield bonds traded at a yield under 2%.
• Argentina, a serial defaulter, sold 100-year bonds in an oversubscribed offer.
• Illinois, hopelessly insolvent, sold 3.75% bonds to bondholders fighting for allocations.
• Global stock market capitalization skyrocketed by $15 trillion to over $85 trillion and a record 113% of global GDP.
• The market cap of the FANGs increased by more than $1 trillion.
• S&P 500 SPX, -0.37%  volatility dropped to 50-year lows and Treasury volatility to 30-year lows.
• Money-losing Tesla Inc. TSLA, -0.39%  sold 5% bonds with no covenants as it burned $4 billion-plus in cash and produced few cars.

This is a joyless bubble, however. It is accompanied by political divisiveness and social turmoil. Immoral behavior that was tolerated for years is finally called to account, while a few brave journalists fight against establishment forces to reveal deep corruption at the core of our government. (Yes, I am speaking of Uranium One and the Obama Justice Department).

In 2018, a lot of chickens are going to come home to roost in Washington, on Wall Street, and in the media centers of New York City and Los Angeles. Icons will be blasted into dust as the tides of cheap money, cronyism, complicity and stupidity recede. Beware entities with too much debt, too much secrecy, too much hype. Beware false idols. Every bubble destroys its idols, and so shall this one.

Related: 
Why Bitcoin is Worthless - Click here
Video - Bitcoin Bubble


Updated 12/9/17

Atlantis - Pivot Point Precision

Investing can be frustrating with prices and indicators fluctuating constantly creating doubt and uncertainty.

Most investors would prefer a clear entry point near the start of a new trend and then a straight line trip to success. Is this a realistic goal? Can we ignore the price noise while traveling on this train to the exit station?

Yes, we can and in essentially straight lines (after the liftoff) no less! A very impressive performance, to say the least. Take a look at this Pivot Point example.

Background Parameters

We all know that the highest probabilities of profit occur when a new positive daily emerges within an existing positive weekly/monthly trend. Building on that knowledge, the Atlantis "Pivot Point" provides unique guidance and confirmation within that context. 

It is built on the PTD (price, time & distance) formula along with a Gaussian math probability density function and sine wave analysis layered into other indicators 2 levels deep which has the benefit of revealing a major trend change all by itself. Quite a mouthful!

In plain English, it takes elements of the TDI, TDX and "train track technology" and combines all of them in a unique way providing pivot point alerts for a new daily uptrend.

Chart Examples

We had two "live and in progress" Atlantis MMM candidates that resulted in successful demonstrations and witnessed by all members. How was this done? 


Continued here

The Powerful GPS Indicator



Most of our technical outlooks are supported or influenced by Pendulum Project's proprietary GPS indicator, a methodology we have used for 2 years. 

Built on many years of research and development, this GPS is uncanny and precise while being uncommonly profitable in its results. The indicator makes all other SAR type indicators obsolete and, in some ways, tracks a trend all by itself.  

More here

Creating Time, Buying Time & Balance of Time

In general reference terms, we can all relate to the time frames of the “past, present and future” or “yesterday, today and tomorrow”. These are all valid reference points because they relate to our perception of time period extensions. 

Creating Time

 We can “make time” for a project, but we cannot “create time” since it is a straight, progressive and mathematical measurement, not a manufactured product. In this connection, there is no such thing as the “present” or “now”. It just passed you by. There is only the past and the future time frames.

We also cannot change the past. If that were possible, it would result in a change of future outcomes. Of course, if one is living in space, time may be relative or be distorted by black holes in the universe. On this planet, we have to deal with time using our own down to earth reference points.

As a result, the regrettable past is behind us, the present is nowhere to be found and the future is uncertain. What to do? Shall we buy time? 

Buying Time 

As an example, what has your government been doing? They have been “buying time” to avoid the recognition of being monetarily bankrupt. This is not buying time but a simple postponement. 

Time is not a commodity one can buy any more than one can buy time to breathe. 

In the financial games arena, the government can postpone hard decisions from the past to some point of time into the future. Unfortunately, they have built a pyramid of procrastination which eventually will fail. 

Their “pastimes” (pun intended) will literally fail in future times. This is guaranteed, even with postponements, because over time:
  • Delaying tactics always reach their limit
  • Ponzi schemes never work
  • Confidence in the system will pass a point of no return

One can temporarily rearrange the monetary deck chairs, try to bail out the frigid financial water and attempt to plug the holes in the hull but ultimately and regrettably, this financial boat will sink. 

In my view, confidence in the system is the critical link.

Balance of Time
 

In the natural world, even with free will, we must live in harmony and be in balance with natural time, value and mathematical constraints. The current unnatural order of debt and financial shenanigans will be resolved back into an equilibrium state in a future time with great certainty. 

It first involves the steps of recognition followed by resolution and then financial redemption. The process involves a considerable amount of market price change, time and distance to accomplish. 

This is quite similar to traveling to the junkyard with an old car which involves the primary elements of:
  • Price (or cost) to get there
  • Time to get there
  • Distance traveled to get there

This is all based on my PTD formula noted elsewhere on this site.

In financial market trading, prices will discount these future monetary events in advance by way of the bond markets, currencies and commodities so these areas bear watching.

Time Will Tell


How long the fiscal insanity continues to be ignored cannot be mathematically predicted with any certainty at this time. Which strand of straw breaks the camel’s back is also unknown.

The past is our guide to the future. Based on human nature which tends to postpone decisions until they become visible and on historical precedent of similar situations in the past, this much is clear. It will probably occur initially in increments of increasing intensity to: 
  • Lessen the pain on the peasants
  • Maintain control
  • Demonstrate “financial progress”

Those tactics will ultimately fail but only the passage time will tell us precisely.

Invest wisely. It's time.

Related:  BreakPoint - Click here