VERY IMPORTANT!
Martin Armstrong's "if this, then that" reversals have indicated that a very rare and unexpected outcome has become more plausible:
What Armstrong is saying is that the prediction markets (i.e. the Euro's FX value) may have ascertained that BREXIT vote will result with Britain remaining in the EU. Probably because of the corrupt control (e.g. vote counting cheating) combined the people can be frightened by for example the speech from Obama threatening to cut off Britian from trade negotiations. Additionally the EU migration policy has enabled many migrants to relocate for better work in the UK and throughout the EU. Additionally many retirees in Europe dependent on government's implicit backing of pensions who are frightened by the prospects of a turn away from socialism.
This was what I predicted ("Europe will not disintegrate") back in 2010 (see the bolded linked essay which btw was widely syndicated at goldeagle.com, marketoracle,co.uk, financialsense.com, silverbearcafe, etc):
I will be the first to admit I needed a week to fully absorb the following works of AnonyMint.
The Rise of Knowledge
Understand Everything Fundamentally <--- this one
The implications of this are that the rising interest rates and slingshot scenario for the US stocks and US dollar could be delayed until 2017 or even 2018. This FALSE MOVE up for Europe could cause a FALSE MOVE down for the US stock market and US dollar (inversion of the reasons for the slingshot move) which will load the slingshot with maximum catapulting force.
Those who don't understand what I am referring to by "slingshot" need to review my recent posts upthread.
So this means we might not get a crash in Bitcoin and gold at this time if they are still anti-correlated to the US dollar and US stocks. We might be looking at "happy speculating days are here again" for another 1.5 years!! OMG!!
But realize that when the slingshot comes 2017ish (with the phase transition accelerated stampede beginning perhaps 2017.95 instead of peaking on that date as originally speculated), US dollar, US stocks, gold, Bitcoin, and other tangible "off the grid" assets will be aligned in an upward bubble as the rest of the world flees its collapsing economies (for reasons as explained upthread).
So assuming BREXIT is denied (and the public's support of EU is affirmed), we may see for the remainder of 2016 that USD down, US stocks down, and gold and Bitcoin could go either direction. Gold might go down since it is seen as a hedge against government failure. Bitcoin could go up if people are selling gold and looking for an alternative speculation in the tinfoil hat arena. Bitcoin isn't really a hedge against government failure, rather BTC is a crypto-gambler's paradise reserve currency. But gold may also still be anti-correlated to the USD somewhat, so perhaps gold would not decline and not go up either. However it is possible that Bitcoin would go down with both gold and USD/USD stocks, if Bitcoin is seem also ideologically a bet on the failure of currency unions and governments. My thinking though is Bitcoin is a hi-tech innovation and is driven by crypto speculation demand. Perhaps what can bring Bitcoin down is the realization that SegWit doesn't solve Bitcoin's scalepocalyse.
Whereas, once that FALSE MOVE into the Euro peaks and the realities of how fucked the ZIRP and pegging of currencies is, with the $10 trillion short on the USD by foreign corporation bond offerings, then the SLINGSHOT back into the USD and US stocks, which at first will confound everyone. But this will accelerate the collapse of the rest of the world as the USD rises.
As this gains steam, it is possible it may pull some money out of Bitcoin, as Bitcoin may have peaked from the current up move, and speculators will want a new speculation as they see gold and USD/US stocks rising. So perhaps Bitcoin is anti-correlated to gold after all! Hmmm. But the other possibility is gold and Bitcoin both don't make a significant move on the FALSE MOVE, or they both go down or up together.
My bet is as follows:
1. Gold is primarily a hedge against failure of government now, and no longer anti-correlated to USD. Tinfoil hat goldbugs have by now realized China is not our savior.
2. BREXIT fails, Euro up, Euro stocks up, USD down, USD stocks down, gold down, and Bitcoin confused.
3. SegWit realized to be insufficient, Bitcoin down hard along with gold, USD, USD stocks.
Edit: Armstrong sees gold aligning with USD stocks (but very importantly still disaligned with USD) in preparation for the upcoming FALSE MOVE in 2016 followed by SLINGSHOT move in 2017. And has noted USA Dow stocks in the region of technical support. So it appears the current up move in gold, Bitcoin, and stocks will reverse with the outcome of the BREXIT vote if is a "No" result.
Martin Armstrong's "if this, then that" reversals have indicated that a very rare and unexpected outcome has become more plausible:
We will do a brief video update tomorrow on the general state of the markets given we have elected Monthly Bullish Reversals in several currencies. While we have been looking for the Euro to reach 116, we have now clearly extended the sideways rally given that the major low for last year took place in March 2015. May has been the main target in time on our arrays for a long-time. It appears we should press higher into May (dollar decline). There is a potential that exceeding the 117 level could spark a rally even up to the 125 level. This is rather serious for last years high was 12109. Exceeding that high intraday would make 2016 a REACTION HIGH since we did not make a new low this year.
The yearly array in the Euro warns the turning points are 2016 and 2018 followed then by 2022. Additionally, 2016 is a PANIC CYCLE YEAR and we have not seen anything unfold with volatility just yet. We have the BREXIT vote in June. A failure for Britain to exit would perhaps create that last rally of euphoria that the Euro will survive. Nevertheless, the fundamentals which hit in 2017 globally, warn that the trend thereafter does not look very bright.
Such a move in the Euro to exceed last years high would most likely result in a tremendous setup for a [ur=https://www.armstrongeconomics.com/uncategorized/the-false-move/]FALSE MOVE[/url] and the slingshot we see that appears to be unfolding from next year onward. Everything from oil, turmoil in Saudi Arabia, commodities (including metals) to stocks, bonds, and currencies, are all warning that we will see the crazy times ahead in trading where most will lose everything.
The yearly array in the Euro warns the turning points are 2016 and 2018 followed then by 2022. Additionally, 2016 is a PANIC CYCLE YEAR and we have not seen anything unfold with volatility just yet. We have the BREXIT vote in June. A failure for Britain to exit would perhaps create that last rally of euphoria that the Euro will survive. Nevertheless, the fundamentals which hit in 2017 globally, warn that the trend thereafter does not look very bright.
Such a move in the Euro to exceed last years high would most likely result in a tremendous setup for a [ur=https://www.armstrongeconomics.com/uncategorized/the-false-move/]FALSE MOVE[/url] and the slingshot we see that appears to be unfolding from next year onward. Everything from oil, turmoil in Saudi Arabia, commodities (including metals) to stocks, bonds, and currencies, are all warning that we will see the crazy times ahead in trading where most will lose everything.
What Armstrong is saying is that the prediction markets (i.e. the Euro's FX value) may have ascertained that BREXIT vote will result with Britain remaining in the EU. Probably because of the corrupt control (e.g. vote counting cheating) combined the people can be frightened by for example the speech from Obama threatening to cut off Britian from trade negotiations. Additionally the EU migration policy has enabled many migrants to relocate for better work in the UK and throughout the EU. Additionally many retirees in Europe dependent on government's implicit backing of pensions who are frightened by the prospects of a turn away from socialism.
This was what I predicted ("Europe will not disintegrate") back in 2010 (see the bolded linked essay which btw was widely syndicated at goldeagle.com, marketoracle,co.uk, financialsense.com, silverbearcafe, etc):
You will probably need a week or two of studying the thread slowly.
I will be the first to admit I needed a week to fully absorb the following works of AnonyMint.
The Rise of Knowledge
Understand Everything Fundamentally <--- this one
The implications of this are that the rising interest rates and slingshot scenario for the US stocks and US dollar could be delayed until 2017 or even 2018. This FALSE MOVE up for Europe could cause a FALSE MOVE down for the US stock market and US dollar (inversion of the reasons for the slingshot move) which will load the slingshot with maximum catapulting force.
Those who don't understand what I am referring to by "slingshot" need to review my recent posts upthread.
So this means we might not get a crash in Bitcoin and gold at this time if they are still anti-correlated to the US dollar and US stocks. We might be looking at "happy speculating days are here again" for another 1.5 years!! OMG!!
But realize that when the slingshot comes 2017ish (with the phase transition accelerated stampede beginning perhaps 2017.95 instead of peaking on that date as originally speculated), US dollar, US stocks, gold, Bitcoin, and other tangible "off the grid" assets will be aligned in an upward bubble as the rest of the world flees its collapsing economies (for reasons as explained upthread).
So assuming BREXIT is denied (and the public's support of EU is affirmed), we may see for the remainder of 2016 that USD down, US stocks down, and gold and Bitcoin could go either direction. Gold might go down since it is seen as a hedge against government failure. Bitcoin could go up if people are selling gold and looking for an alternative speculation in the tinfoil hat arena. Bitcoin isn't really a hedge against government failure, rather BTC is a crypto-gambler's paradise reserve currency. But gold may also still be anti-correlated to the USD somewhat, so perhaps gold would not decline and not go up either. However it is possible that Bitcoin would go down with both gold and USD/USD stocks, if Bitcoin is seem also ideologically a bet on the failure of currency unions and governments. My thinking though is Bitcoin is a hi-tech innovation and is driven by crypto speculation demand. Perhaps what can bring Bitcoin down is the realization that SegWit doesn't solve Bitcoin's scalepocalyse.
Whereas, once that FALSE MOVE into the Euro peaks and the realities of how fucked the ZIRP and pegging of currencies is, with the $10 trillion short on the USD by foreign corporation bond offerings, then the SLINGSHOT back into the USD and US stocks, which at first will confound everyone. But this will accelerate the collapse of the rest of the world as the USD rises.
As this gains steam, it is possible it may pull some money out of Bitcoin, as Bitcoin may have peaked from the current up move, and speculators will want a new speculation as they see gold and USD/US stocks rising. So perhaps Bitcoin is anti-correlated to gold after all! Hmmm. But the other possibility is gold and Bitcoin both don't make a significant move on the FALSE MOVE, or they both go down or up together.
My bet is as follows:
1. Gold is primarily a hedge against failure of government now, and no longer anti-correlated to USD. Tinfoil hat goldbugs have by now realized China is not our savior.
2. BREXIT fails, Euro up, Euro stocks up, USD down, USD stocks down, gold down, and Bitcoin confused.
3. SegWit realized to be insufficient, Bitcoin down hard along with gold, USD, USD stocks.
Edit: Armstrong sees gold aligning with USD stocks (but very importantly still disaligned with USD) in preparation for the upcoming FALSE MOVE in 2016 followed by SLINGSHOT move in 2017. And has noted USA Dow stocks in the region of technical support. So it appears the current up move in gold, Bitcoin, and stocks will reverse with the outcome of the BREXIT vote if is a "No" result.