Recently the volatility in US stock markets has been extreme to say the least, with intra-day volatility in the Dow Jones index an astounding 2,588 points on Monday and experiencing another intraday rollercoaster of more than 1,246 points yesterday (up 434 points at market open, down 313 points, then up 499 points). Number one, is there any way to actually play these markets without losing your shirt? Number two, is there any way to make sense of this extreme volatility? First, start by turning off your television and putting down the New York Times and Wall Street Journal, because I haven’t heard one talking head or read one author of any mainstream media article that has been within 100 kilometers of the truth in their attempts to explain the source of the extreme volatility in US markets. The reality is that all of this extreme volatility is the direct result of Central Banker market manipulation and Commercial Banker HFT (High Frequency Trading) algorithms. If you understand anything about statistics and the 5-sigma, 6-sigma and 7-sigma events that have been happening in gold markets, stock markets and forex markets with regularity over the past 5-years, then you understand that such events would have only the most minute of chances of ever materializing were free markets to exist. For those that understand nothing about statistics, don’t worry, I’ll make a vlog about this concept and post it so next time anyone tries to tell you that the extreme volatility in US stock markets is due to a natural “correction”, you can call them out for knowing nothing about the next to zero probability of these events happening without massive manipulation. Just subscribe to my YouTube channel here to be informed of when I release this video. In fact, all of our current YouTube channel subscribers were well aware that a US stock market crash was coming well before it happened, as we posted a video on our channel on 25 July 2015 titled, “Bankers’ NYSE Shutdown to Stop US Stock Market Crash Will Eventually Fail”. Consequently, we hope that many of you that subscribe to our YouTube channel were able to earn some of the similar yields we earned this month by positioning yourself short in US stock markets sometime this month, as we provided adequate warning of what happened in US stock markets in the above video.
Here are two ways to remain profitable in this market:
(1) Disregard the commentary of big bank analysts and the mainstream media about the causes of this extreme volatility; and
(2) Make decisions based upon understand the fraud that is being exercised in these markets and have strategies to lock in profits and to prevent significant losses when banker manipulation causes huge reversals like the kind that happened yesterday.
In the meantime, even with all US markets rebounding by about 4% yesterday (on the backs of more Central Banker manipulation), as of market close yesterday, here is the performance of every asset we hold in our CIO (Crisis Investment Opportunities) newsletter this month since our last newsletter was released at the beginning of this month. +16.04%, +13.15%, +11.14%, +5.93%, +5.27%, +2.75%, -2.43%. And we closed out four positions that soared +36.54%, +18.19%, +16.40% and +21.01% in this past month. So with mainstream media commentary so wrong in saying that gold and silver advocates are all the same and always claim that it’s time to buy gold and silver stocks 24 hours a day, 7 days a week, 365 days a year, and in a year that our benchmark Philadelphia Gold & Silver Index is down -35.50% YTD, the yield of our CIO newsletter is positive YTD as of 26 August 2015. In fact, we told all of our clients two weeks ago that bankers were going to smash gold and silver prices once again, and last week, we opened up some short gold and short silver positions in preparation of the smash we knew was coming. Currently, our only two gold and silver stocks that we hold are among the positive yields above for this month. All of our other gains above came from shorting the US stock market into the huge fall that has occurred.
Remember, even though we released our Vlog_004: 8 Charts that Illustrate the Necessity of Owning Physical Gold and Silver earlier this week, if you read the video description in our YouTube channel we posted this disclaimer the same day we posted that vlog: “This video is not an endorsement of buying gold and silver right at these prices today, as specific guidance of when to buy gold and silver is provided only through our subscription services. However, this video should adequately outline the necessity of owning physical gold and silver to all viewers.” And indeed this is still true. We still strongly believe in the necessity of owning physical gold and silver, especially as prices become ridiculously cheap in these assets.
In the end, the best guidance we can provide to you is to learn the true drivers (Central Bankers) of what is making these stock markets (in the US and China) move so erratically and to expect massive volatile swings up and down and to have adequate strategies to deal with them. Stick to these two principles, and you will emerge from the rubble of these collapsing global stock markets fine. If you need some help with your strategies, please feel free to come by maalamalama.com and read our fact sheets regarding our available strategic services.