View from the Top Down – Interim Update – 8/16/2021

I have marked the cycle FLDs (Future Lines of Demarcation) on the chart immediately above. The 40-day FLD is the initial target, also currently at 4200 or so. Notice how close it is to the blue line, which is the 21-day EMA. We will see how all of this develops, and I will keep you posted. Keep in mind that this is the initial target. We could certainly go lower as the decline develops further.

The Founders Group is holding on to the Energy (XLE) position until we approach the close today. While the XLE may not hold, you can also imagine that the situation at hand could destabilize the Middle East. With the current administration increasing our dependency on Middle East Oil, oil prices might soon reflect the chaos. I want to see how the price behaves into the close before I decide whether to hold or fold.

Note that we are approaching the 20th anniversary of 9/11. We have no Southern Border at the current time. More than 5,000 terrorist prisoners have just been released from Afghan prisons by the Taliban. This is a lethal combination, and there is nothing to stop terrorists from entering our country.

This morning, China (the CCP) has already posted headlines aimed at Taiwan and Hong Kong, using Afghanistan as their example. The CCP is warning that Taiwan and Hong Kong need to submit to CCP control as there will be no interference or rescue from the United States. Not only is this tragic, but it could also be a strategic nightmare. Keep in mind that most of our computer chips come from Taiwan.

Recall what I have previously communicated about Fourth Turnings. Every such turning in history has resulted in major wars.

The turn of events in Afghanistan over the weekend has profound, global implications, most of which have not even come to light as yet.

Stay tuned,

A.F. Thornton