We had some technical issues tonight, and I have been awake until 2:30 am trying to fix the problems. I usually get up at 3:00 am – so the forecast will come out this afternoon and I won’t be publishing key levels this morning.
The key to the week ahead is to get through the Fed meeting and rate increase announcement on Wednesday, then monthly options expiration on Friday. I do not anticipate taking any significant positions before these events unless the price action dictates otherwise.
As we wade through these events with seriously negative investor sentiment, we are looking for a swing low to grip near the recent 2/24 and 3/8 lows, if not a temporary spike low below them to run all the stops.
Note the falling wedge pattern outlined in the chart above. The pattern can also help guide us through the next few sessions.
Even with a relief rally, this baby bear has the potential to grow into a mama bear before this unfortunate era is behind us.
At the moment, there is strong support at 4200 and strong resistance between 4300 and 4400, at least until monthly options expire around those strikes on Friday.
Please make no mistake; we are in a severe and unfolding crisis as the world divides between the fiat currency (worthless money) powers and commodity-rich countries such as Russia and China.
I believe that the U.S. dollar is finished as the reserve currency, as is our global leadership position. We are being challenged in every corridor because we have a fat, weak, and feckless government, and plenty of blame precedes Sleepy Joe.
Our “cancel culture’ politicians made a severe error in weaponizing the dollar and our Federal Reserve against Russia. No legitimate government will trust us any longer with their reserves, and they will flee our sphere of influence just as fast as conservatives are fleeing Twitter.
Nothing the Fed can do will stop the inflation unleashed in this crisis. We are shifting from a Western-dominated or financialized monetary world to an eastern-dominated or commoditized one.
When you see those unbelievable price spikes on oil, wheat, nickel, etc., don’t forget that some firm is on the wrong side of every one of those trades. Hedge funds and banks are losing billions and are sinking. It takes about a week for bodies to float to the surface.
Inflation is written all over this for us. This crisis is not like anything we have seen since President Nixon took the U.S. dollar off gold in 1971, ending the last era of commodity-based money.
Fiat currencies and the global powers that embrace them always end on the trash heap of history. We are now witnessing our potential demise in real-time.
Washington takes this so seriously they purposefully passed another $3.5 trillion in deficit spending in the middle of the night. It gets the government through another six months. Recall that we were all either asleep or distracted by the war when they passed the bill.
The majority of our political leadership class is corrupt, skimming off the top for themselves and their families. They will be our undoing,
Oh, did I forget to say Good Morning?
A.F. Thornton