If Bitcoin Is A Fraud, So Too Is The Dow Jones Industrial Average

05/30/18

Below is a chart of the ETF that tracks the value of bitcoin, GBTC, and the Dow Jones Industrial average for one year ending 4/29/18. One can easily see the correlation. They are the same chart. Maybe GBTC leads the Dow in direction. If so, GBTC is going lower while the last Federal Reserve instigated rally only turned ugly today with a near 400-point selloff. Let’s review.

As I have been writing, America has been stripped of everything including a ‘market’ of stocks and the ability of investors to realize price discovery. The Fed is in charge of that. Forget Elliot Wave or fundamentals or anything else. That stuff only applies to real market behavior. Technical patterns only matter because the Fed manipulates them to keep us playing along.

The selloff today will no doubt be met by a strong ‘buying’ surge early Wednesday morning. Clearly the Fed will not tolerate another breach of their self imposed Dikembe Mutombo Line (DML - see past articles for explanation) of 24k on the Dow. So, downside from here is limited.

Readers may wonder, how can I be so precise in predictions. I wrote a few months ago that the DML had been established. I followed with the assertion that the Fed’s next target would be Dow 25k as this would give them a ‘higher high’. This way the Fed could say, “Look, we have an uptrend forming.” So forget everything about ‘markets’. They don’t exist anymore in our current police state of complete control.  Readers want to know where do we go from here.

As of this writing, the Dow is only 361 points above the DML. So, downside risk from here is limited. Next, the Fed has to push the Dow further than the now previous high of 25k. Looking at the charts, it looks like Mr. Powell’s nefarious band of NWO slavemasters would target Dow 25,400 or so. A thousand point rally is nothing for these people.

Yes, I know that the yield curve is currently less than 40 bps from inversion. I know that stock buybacks and Fed intervention account for all stock valuation gains. Yes, I know that the SEC has launched an investigation into rather curious activity in the options markets where it appears that someone (cough-Fed) has been manipulating the VIX by buying the most out-of-money contracts in large volumes. So what?

Welcome to the new america. Nothing is real. Nothing is true. No one wants to know the truth. It’s all one big con game. Investors are the mark. They are easy. They don’t know anything. Everyone I talk to repeats the same refrain - ‘stock prices always seem to come back up’. Yes, they do don’t they. I wonder why?

That brings me to bitcoin. Many people believe bitcoin is a fraud. It has no value. Yet, these same people believe that the Dow is true and represents value. Look at the one-year chart below of the DJIA in gold and GBTC in black. They are essentially the same chart. How is it that one is pure speculation and gambling and the other is not. Charts don’t lie. Governments and banksters do.

Notice one thing. Remember the slight Dow selloff in mid-April ’18. Remember the reason? Supposedly the 10-year US Treasury yield was spiking toward 3%. Then in May, the yield went over 3% and stocks rallied to the 25k mark on the Dow. Explanations are all BS. Explanations are given to keep investors, or suckers, playing along. As if, everything has to have a reason.

Again, the only reason the Dow even trades is the Federal Reserve Bank uses it as a puppeteer uses strings. So again, look at the chart below and decide which line is a fraud. Hint, both of them. Note that bitcoin has been falling ever since the CBOE began trading bitcoin futures in December 2017. I knew that would be the end of bitcoin. It will never be allowed to compete with the Fed’s fraud paper money.

DJIA - 1-year ending 5/29/18
Chart courtesy StockCharts.com


Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article.

One Sure Bear Market Sign

05/04/18

Investors should always be on the alert for a bear market. Wouldn’t it be great if there was a clear sign that a bear market was forming? Well, in my opinion, there is.

I call it the formation of a Dikembe Mutombo Line. In our nanny-state, government manipulated, anti-capitalism, totally corrupted, illusion of wealth pseudo economy, the Dow Jones Industrial Average is the ultimate shiny object of hypnotism. The average person on the street has no idea whatsoever how they are being punked every single day.

If readers missed my article from 04/04/18, here is the link to see the manipulation of stock prices at the origin:

http://bmfinvest.blogspot.com/2018/04/the-federal-reserve-impersonates.html

Since everything in stock indices now has gotten so obviously contrived and arbitrary based on central banker manipulations to keep us playing the game of economics, we need an explanation for the silliness that we see. Thus, the Dikembe Mutombo Line (DML) comes into play.

Forget about fundamentals or data or anything read or heard in investment media. It is meaningless drivel. All that matters as far as stock prices is what the Federal Reserve is doing. The Fed, after all, sets prices that we supposedly free and capitalistic people pay for stocks every day.

So how do we know for sure that stock indices are falling into a bear market?

Simple. While we would all agree that bear markets are a normal process of participants selling off assets because their prices have become overly expensive, the Fed has determined that price discovery will no longer be allowed if that discovery pushes prices lower. When artificial lines are drawn, a bear market lurks. Why?

Since we now live in a false economy where debt is the engine of growth and repayment of that debt is impossible, someone has to rig prices. Should stock prices tumble, the tail that now wags the dog would surely usher in an undeniable recession. Enter the Fed.

So what do we look for at the beginning of a bear market?

Obviously robust selling begins to lower stock prices. Now, the Fed and other dark forces conspire together to limit the price drop that the selling imposes. Clearly this is arbitrary but give the Fed credit for one thing. They pay close attention to technical patterns. How do we know that a bear market started in Q1?

Here is the answer. As prices thrust lower, the Fed steps in to arrest the selling with equal buying force. Again, I have included the chart below to show where the Fed has elected to arrest the current bear market. This is the DML. They block the selling attempt of prudent investors and then just like former NBA center Dikembe Mutombo used to do when he blocked a shot, the Fed wags a finger at would-be sellers in admonishment. Then another thrust down and again the Fed arrests the selling. Like a blocked shot in basketball, these turning points in selloffs that suddenly become rallies are ‘V-shaped’ and materialize from nowhere.

For whatever reason, the Fed has chosen Dow 24,000 as the DML. I suspect derivatives come into play. They will defend this line at all costs. When we see these artificial limits imposed, we can be sure that the Fed sees the onset of a bear market and the ensuing recession. Forget economic numbers. They are faker than a Trump Russian dossier. Forget corporate earnings. They are more manipulated than Play-doh. Stock indices turn when the Fed says they turn. Today, the Fed will not allow a drop below Dow 24k.

Notice the 400-point selloff on Thursday morning that took the Dow well below 24,000. That was met by a midday rally (surprise?) that brought the Dow back to where? Yep, 24k. Well, 23996 before a slight fade at the end of the day. So for Friday, 5/4/18, everyone on planet Earth knew what to do. Well, everyone that knows about the DML. POW!!! An opening 300-point rally on the Dow put it safely above the 24k level. Whew! Was I worried? Nope.

As this get rather boring, like watching a WWE match in which the winner is pre-determined, or a Harlem Globetrotter game that is just entertainment, I have better things to do this afternoon. I suspect as the afternoon passes, Mr. Powell will leave his post at the NY trading arm of the Fed and go home early. Some of the morning’s gains might erode. But so be it. Mr. Powell will be back to work on Monday morning manipulating our world.

Now, one thing to keep in mind. Lower lows and lower highs are a downtrend. With the Fed setting the DML at Dow 24k, we have a series of lower highs and even lows. This is the technical ‘descending triangle’. It would be extremely bearish if the Dow were to breach this low. Are you reading this, Mr. Powell?

I’m sure Mr. Powell already knows this. The trick now is to set a ‘higher high’. That means the Dow needs to rise to around at least 25,000 to blow up the descending triangle. Come on, Mr. Powell. We know you can do it!

DJIA - 8-months ending 5/4/18
Chart courtesy StockCharts.com


Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article.