DCB Call Correct — Key Sector Reversal Coming Soon
As we forecast, the DCB did not last long.
Most importantly, Deepcaster now forecasts a Key Sector Mega-Reversal is coming soon.
As forecast, the Dead Cat Bounce in the Equities Market was very brief.
Several of the Triggers we earlier noted for a move lower were triggered or amplified, especially, e.g., U.S. Election Uncertainty compounded by the Supreme Court Controversy, compounded by CoVid resurgence in Europe and general Economic Uncertainty. More volatility is coming at least through the end of this year.
But the Key Sector Mega-Reversal coming in the next few days or very few weeks is, we forecast, the Precious Metals.
It is important to understand Why and How they were taken down so violently Monday this week.
- U.S. Dollar Strength — Various Stress-Producing Events/Trends around the World: the aforementioned plus the fact that the $US is still the World’s Reserve Currency, generate flight to $US perceived safe haven quality
- Result — $US up Precious Metals Down
Since the Precious Metals have been recently bouncing around Sideways at support, the Precious Metals knockdown caused speculator selling, margin call exits and general panic selling.
But notice that the Selling has abated at multi-months lows, i.e., around:
Gold $1910ish and
But of Notable Importance the HUI was only marginally down!
Holders of mining Shares realize that, as we have said, they are options which do not expire. HUI owners are bullish on Miners Shares as are we.
We think they and the Precious Metals will rocket to new highs, likely beginning in the next few days or very few weeks.
Predictably, we will be focused on Potential Profit Opportunities, several of which are in our recommended holdings.
September 22, 2020
Sectors DCB Coming! Prepare to Profit & Protect
Highly likely that a Sectors DCB is Coming This Week. So, this Alert aims to prepare you to Profit and Protect.
The Equity Sectors have already started bouncing this week, but we forecast that this is a DCB — Dead Cat Bounce — likely lasting only two or three weeks at most. There are simply too many triggers for a Takedown which are lurking. We encourage you to review these triggers which we listed in our very recent Letters and Alerts.
The probability of at least one of these occurring in the next two or three weeks to take down the Equities Markets is very high. These Triggers — the Macro — are supported by the Technicals which, at best, provide probability. Consider Key Technicals:
- the 15 and 60 minute charts foreshadow a bounce short-term BUT
- the SPX is sitting right on its 50DMA support and
- the 9- and 20-day EMA are resistance overhead.
Given the foregoing, it appears that this week’s Equities Bounce will last, at most, two or three weeks then Collapse. Thus Proving it was a Dead Cat Bounce.
Given the foregoing, we recommend that you take another look at our recent Gold and Silver and Precious Metals Miners Recommendations and get positioned in them (if you are not already) for the Equities Dead Cat to Fall. This Strategy Provides your best opportunity to Profit and Protect.
September 15, 2020
The Highest Probability Mega-Profits Play
This week Deepcaster identifies The Highest Probability Mega-Profits Play. And by Mega-Profits, we mean several hundred per cent Potential profit!
The Highest Probability Mega-Profits play is so because, we reiterate:
- Excessive Unpayable Sovereign, Individual and Business Debt
- Pandemic caused Economic Contraction which will last for months
- Vastly Excessive Fiat Money Printing by The Fed and other Central Banks
And excessive Fiat “Money” Printing leads to the Devaluation of the U.S. Dollar and other Fiat Currencies. That is, it leads to loss of Purchasing Power.
In other words, it leads to Inflation, and eventually, Hyperinflation. And what Assets are increasingly Profitable and Protective in an Inflationary Environment?
Answer: Real Money, i.e., Gold and Silver. Of these two, both are Protective but Silver arguably more so. What happened in 1934 — FDR forbade the private ownership of Gold — could happen again, as the oncoming Crisis continues to deepen.
Contrast Silver with Gold. Silver is not only Money, but also is essential to a number of industrial, medical, and high Tech uses.
Perhaps, most important, there is now an increasing supply shortage.
Thus, it is no surprise that even when Silver has sold off recently it has not typically sold below its recent low — $26ish. So given that it is Real Money and has multi Essential Uses, and is in an Increasing Supply Shortage, Silver is the Highest Mega Profits Play. we suggest you Buy one of the Forms of Silver Ownership which Deepcaster has already recommended:
Coins: (Not Rounds or Bars)
ETFs: PSLV – Not SLV
Leveraged ETFs: AGQ which Deepcaster Owns, but with the Caveat that it is very volatile, and thus has to be monitored closely, and bought on the Dips and Sold on the Bounces
Silver Miners Shares: Deepcaster has already recommended certain of these and expects to recommend additional ones soon.
Because shares have not Taken off Yet, they have the most Profit Upside and are, de facto, Options which do not expire.
So, we recommend buying these on the Dips.
One such Recommendation already in our Portfolio has not yet taken off. If you do not already own it, we recommend buying shares now.
Hecla Mining (HL) is the largest and lowest cost silver producer in the USA. It has two mines and exploration properties in Silver Mining Districts in the U.S. and Mexico (so there is some Political Risk.)
And, Regarding the Dips, The Cartel is still Active and still does Take Down the prices of Gold and Silver.
But Because of the increasing demand for Physical by China, India and Russia, all of whom take Delivery of the Metal they buy, The Cartel is not able to Keep the Prices down for very long.
Targets over the Next Two Years:
Silver $200 per ounce
Gold $10,000 per ounce
Silver and Gold are the Highest Probability Mega-Profits Play.
Note: Deepcaster does not recommend Bitcoin. It is not real money. It can not be personally, physically possessed, a necessary condition for Individual Independence.
And what happens when the Grid goes down, or is hacked as it has been? Bitcoin Owners are SOL! Of course, The Cartel loves it. Because it diverts some of the buying Pressure from Gold and Silver.
September 9, 2020