Cash is King

[Lowlow]

Nice break in the market, cash is king.

I am a bit giddy, maybe this is finally the break in trend that leads to some tasty deflation, I hope so.

This bullsh*t market has been propped up for so freaking long, and there is so much blind faith built into this market, so much complacency, etc, that it is ripe for the picking, and today they started to do a bit of harvesting.  It takes a long time for the sheep to grow out their wool coats, but when it's time for the fleecing, they never see it coming.

I hope this is finally it, but it is hard to be overly optimistic.  Tentatively I'll put on another PUT position after we bounce in anticipation of a move lower, but mostly it's cash all the way until we get clear capitulation.

If we were to get a replay of 2008 / 2009, gold and silver would take a dump too vs the rising $us, but today it was all pretty flat, barely a move lower in silver, barely a move higher in gold.  To my mind that has always been the question ... when the bubble finally bursts, will it be cash gold and silver, or paper cash that wins the day ?  In 2008 / 2009 it was definitely paper cash.  When the paper is burning, it's hard to know which it will be, maybe this time gold and silver stay flat vs. paper cash.

I'm also curious how it will all play out in the banks, who will get hit with Cyprus style bail-ins this time around.  Governments have changed a lot of banking rules over the past decade to cover themselves when it all breaks again, and depositors are really on the hook this time, and I don't think they'll have a choice but to let it fail, I don't see how they print their way out this time, not with debt-to-gdp as high as it is.

I'm smiling ear to ear, it would be great if this craziness finally reversed trend and we got the correction we've needed literally for decades so we could return to some kind of sanity in the markets.  Maybe we'll finally get it ... an end to the hubris, ego, the end of all the bullsh*t and lies.

Let all the paper burn b*tches!!!!

Edit, had to replace the video because the previous one was deleted by Youtube.

[Blockhead]

Someone once said "if cash is king, precious metals are God" 

[dicker]

Could not agree more. The last couple of days are a correction, but let’s see. 

[Tingles]

Is this 'Prepare for a New World currency' time?

Aren't we going to SDR first, then NWO Crypto?

 

 

[Lowlow]

U.S. -545.91 (-2.13%)

Silver and gold held their own against the U.S. dollar.

[Lowlow]

U.S. +287.16 (+1.15%)

Silver  and gold basically flat.

Good time for ask a simple question ... if the market dropped next week, would you be okay ?

What if the U.S. markets dropped a thousand points (about 4%) ?

If you're in, when would you get out, how would you know that it was time ?

What if the U.S. market dropped TEN THOUSAND points (about 40%) ?

Would you be okay ?

What if the market really was going to drop 50%, even 60%, what if the FTSE 100 dropped to 3000 ?

What would the world be like if that happened ?

What would world central banks do if that happened ?

What would happen to the currencies of the world if that happened ?

Maybe it's because of how I was brought up, but I always think in the long term about how I would actually survive if the world went to hell.  I really think it has a lot to do with growing up during the cold war, when the threat of nuclear war at any moment was so prevalent, we were always looking over our shoulder.

But realistically, what would you do if currencies collapsed and the whole world ended up in a Venezuela kind of situation ... where crime is rampant, food scarce, socialist governments were on the rise, wide spread civil discontent, would you be able to shelter yourself ?  Cloth yourself ?  Feed yourself ?  Protect yourself ?

[KitboyE17]

On 13/10/2018 at 06:22, Lowlow said:

where crime is rampant, food scarce, socialist governments were on the rise,

Sounds like GB already ... 

[bluemoon]

I'd like to see cash regain it's legitimacy, it's looked upon as a crook's economy these days. That's all the more reason for more of us to use it, do your shopping with it, even buy cars and houses with it.

If the market bursts, you'd better have most of your money outside of the banking system. The UK especially has become so socialist that a Cyprus style theft would be 'understandable' by many, especially if a Corbyn government did it.

[Lowlow]

Time to see what this correction is made of.

Asia starting the week lower ...

Hopefully this is finally the correction we've needed.  I think there is real possibility in it, we've been up a lot over the year, interest rates are rising, yield curve is threatening to invert, and let's face it, everyone would love to blame Trump for it.  It's really the perfect storm ... political instability, divisions in culture, stock markets begging to crash, fragile currencies, lots of ominous market metrics, the list goes on and on.

In my opinion, the best reason this could turn into something serious is because people have just forgotten what it was like, it's just time.  It's time for the market to teach some old lessons and make them all new again.

Burn, baby, burn.

[Lowlow]

U.S. -89.44 (-0.35%)

Not a big down day, still above the lows, but they sure sold it before the close.

[Lowlow]

+547.87 (+2.17%)

Nice little bounce, started putting on a VERY out-of-the-money PUT position w/ short duration.

Gold and silver still bouncing around with no clear direction i.e. precious metals and the $us are neck and neck, no clear winner yet.

[Lowlow]

Make or break right here, DJIA (Dow) sitting at 25520, at the crossroads of an upward trend line from the lows, and a downtrend from the high ... it's time to see who wins!  If it breaks down here and heads towards the October 11 low, and breaks that, it could get REALLY UGLY out there, and I think if that happens we could experience a -1200 day.

So far it isn't enough to cause any huge paper fires ... but China, Argentina, Italy, all of that is possible contagion ...

[Lowlow]

-91.74 (-0.36%)

They bought it up to the next level, still waiting to see ..

[Lowlow]

−327.23 (-1.27%)

~200pts above the low put it a week ago, will it hold ?

[Lowlow]

+64.89 (+0.26%)

Won't update again unless there is a significant move this week.

[Lowlow]

-288.21 (-1.14%)

I think they'll sell the close, wonder if they can break the lows ...

[Lowlow]

1 hour ago, Lowlow said:

-288.21 (-1.14%)

I think they'll sell the close, wonder if they can break the lows ...

-608.01 (-2.41%)

Yep, they sold the hell out of the close.

[StackerNoob]

NASDAQ down 4.5% bloody hell. It'll be interesting to see how asia reacts tomorrow.

[Lowlow]

Fire is so pure and beautiful ...

So far no major stories of contagion revealed, but who will be the first to drop if we lose another 500 points, another 1500, another 2500 ?  Will it be a broker, a hedge fund, a bank ?  Which fund will break the dollar on their money market, stop paying loan payments, you can bet everyone on Wall Street is already eyeing their counter-parties wondering who would be first.

You never know where the fire will burn .. where it will spread, sometimes it just smolders and smokes, sometimes in a flash it leaps across expanses of paper and rages ..

If it spreads far and fast enough there won't be enough faith in the world to stop it.

Let it burn to the ground ...

 

[Lowlow]

Futures down -250, can we print -1200 in one day ?

I see a Friday and I wanted it painted black ...

 

[Lowlow]

Pulled the trigger on a large PUT position against the SPX ... I've got skin in the game now.

[Lowlow]

Rolling my position over for another month today.