Today I’m going to let you in on an important tool I use for my active trading services, where members get all my buy and sell signals, with the most accurate timing possible, via an artificial intelligence model that analyzes years of data, makes billions of calculations and then produces a final forecast.
Naturally, as with everything I do, it’s based on cycles, for cycles govern literally everything in the universe, from the physical world to the rhythms and repetitive nature of human behavior and history.
Mind you, I will only do this once. What you are about to see is reserved for members of my services, including Real Wealth Report and Supercycle Trader.
And I’m doing it for solely one reason: To show you how critical a crossroads the global economy and key markets are at and what lies ahead over the next few months, so you can protect yourself.
We’ll start with none other than gold. As you already know, I’ve been warning investors not to buy the recent rally, that it would fail, and I’ve been right. Scores of investors have already gotten hurt, and more blood will spill soon. Take a look at the forecast model:
The green line is the forecast, the black line is the daily closing price of the nearby active futures contract.
As you can clearly see, gold should head into an early October low before bottoming and beginning a new rally.
There will be bounces along the way lower, of course, but once gold cracks $1,300 — I wouldn’t be surprised to see the low $1,200s, even the mid-$1,100s.
Silver’s forecast chart is similar (not shown). If silver cracks the $16.27 level, I wouldn’t at all be surprised to see the $13 level.
You can’t say I didn’t warn you. Over the past several weeks I recommended you hedge any heavy gold and silver holdings you may own with inverse ETFs, such as ProShares UltraShort Gold, symbol GLL, which is already popping nicely higher …
And for silver, ProShares UltraShort Silver, symbol ZSL, a double leveraged ETF, seeking to deliver twice (2x or 200%) the inverse (or opposite) return of the daily performance of silver bullion in U.S. dollars.
How about crude oil?
Crude is following the model closely as well, and should decline a bit more into mid-September, then rally into the end of October, but then slide to new lows come February of next year.
“New lows” means below $26 a barrel. Put another way, the bear market in oil is not quite over yet!
Combined with the fact that the oil-and-energy sector is more indebted than ever, I wouldn’t get too bullish on energy stocks right now.
How about the all-so-important U.S. dollar? The currency that almost every analyst and promoter claims is going to crash and burn later this month? Well, take a look at the AI chart for the U.S. Dollar Index.
Do you see any crash looming on this chart? No. The forecast calls for a stronger dollar all the way into February of next year, then a mild correction, and a still stronger dollar thereafter (not shown).
What about the claims you’re reading out there that the dollar will collapse at the end of this month because the Chinese yuan will formally be admitted to the IMF as part of the Special Drawing Rights, or SDRs?
Nonsense. The yuan was approved for inclusion in the SDR a year ago. The market has already discounted it. Moreover, there is no way it can displace the U.S. dollar. The yuan accounts for roughly 4% of all currency transactions on a daily basis and is still not a fully open capital account or currency. I repeat, there is no way the yuan is going to crash the dollar.
In fact, the opposite will happen. More and more middle- and high-income Chinese will want to diversify their yuan into the U.S. dollar and dollar-based assets, boosting the dollar even higher.
How about platinum? Much like gold and silver — palladium as well (not shown) — the white metal should head lower into early October, then largely move sideways before starting a new rally in December.
By the way, long-term, as strategic metals in the security and military industries, platinum and palladium have enormous potential due to the rising war cycles.
What about junior mining shares that everyone got so excited about this year? And where I’ve warned to not jump on board and instead, wait for a major pullback?
Well, all those investors who chased the miners higher are now getting killed, and will shed even more blood in the weeks ahead. You can see it right here on this chart of the junior mining sector (senior miners, not shown, have a similar forecast chart).
The average senior miner has already lost 18.6% since its recent high while the average junior has shed 19%.
But more losses are coming, as the forecast chart shows miners sliding, like gold and silver, into early October.
Last, but certainly not least, is the Dow Industrials. Take a look. The Dow is in for one heck of a wild ride: A potential sharp decline into early October — with just about everything else — and then the start of an explosive new rally which will take it to new highs in early 2017, then even higher.
You can choose to ride that mini-crash out if you like. But if it were me and I were heavily loaded with stocks, I would consider — as recommended already — hedging via ProShares Short Dow30 ETF (DOG) and/or Direxion Daily S&P 500 Bear 1X Shares (SPDN), both unleveraged.
I show you these charts for one and only one reason: As I noted over the last few weeks, everything I study, all major markets and all my major indicators, tell me we’re approaching a major inflection point in the markets.
The dollar exploding higher. The euro starting to go over the cliff. Stock markets wobbling. Bond markets shaking. Precious metals weak.
Can you imagine what it would be like if you had the power of my AI models and charts like these for your conservative and speculative portfolios, not to mention my fine-tuned buy and sell signals?
Stay tuned and stay safe!