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12.28.2016 - Financial Intelligence Report Bookmark

Trying To Remain Festive
 
Hi folks. Yes it’s that odd week; you know the one. The week between the solemn observation of Christ’s birth, and the wild “go for broke” New Year’s eve.  In just 7 days the mood changes from serene and giving, to blatant excess.  I think it would be better to separate the two by 6 months, but I digress.....
 
It’s always an interesting week for me. Generally it is a shortened week as often the market is closed for a day, and even on the days that it’s open the volumes are horrid. Yet it is the week where more times than not the market makes gains. It is referred to as the “Santa Rally.”  Now it is too early to know if this week and the first week of January are really going to give us this so called rally, but my guess is that DOW 20K will be hit. Why? Because they can.  It has no real significance except for goofy people on CNBC to put on DOW 20K hats

But along with the sluggish trading, the Christmas dinner left-overs, and the mad rushes to return tens of thousands of gifts that people didn’t want, one thing remains the same...the lunacy that is indeed modern day US, doesn’t stop.

This week we learned for instance that if you major in History at George Washington University, you don’t have to take US history.   Yes you read that right. This is from The Blaze....

The history department at GWU has been facing declining interest and enrollment. As a result, they’ve decided that an answer to that problem, and an effective way to recruit new students, is to “to better reflect a globalizing world,” according to comments made by George Washington University faculty members to the student newspaper, The Hatchet.
 
GWU History Department Chair Karin Schultheiss told the same paper at the time the change in requirements was announced that the relaxed regulations meant students could “have a great deal more flexibility than they had before, and they can adapt it to whatever their plans are for the future. Whatever they want to do, there’s a way to make the history department work for them.
 
My guess is that it has nothing to do with giving students more flexibility and instead, once enough History majors/then teachers hit the local school districts, they can re write history the way they see it.  I can see it now... Mr. Roberts, after graduating from GWU gets a job teaching history at Anywhereville, USA.  He begins his 9th grade History class by telling the kids how the US really came about.  You know, a nation of white supremists that they kicked out of Europe, came here  to murder, rape the environment, enslave people, and create a master race.  Or something along the liberal left’s fantasy storybook.
 
But while our Colleges continue to be baby sitter sandboxes for kids too big to play on the swings, the elitists that create such nonsense are still hard at work taking away our freedoms.  I, like many of you want to see Donald Trump do a lot of the things we hoped for. You know, drain the swamp, bring back some logic, toss off the rules and regulations, etc.  But they aren’t just slinking back into the ratholes from which they emerged. Late Friday night, Obama signed into law a very ominous bill. I talked about this bill several weeks ago and like a lot of things that sound like conspiracy theory, many of you just shrugged it off. Well this is big folks, really big. I hope you’re paying attention.
 
Barack Obama has signed into law a bill authorizing some $611 billion in funding for the U.S. military for 2017, but hidden inside the massive governmental document is a provision that is alarming free-speech and limited-government advocates: authorization and funding for a new center to decide what is truth.
 
The newly approved Center for Information Analysis and Response, or as it’s been dubbed, the “Ministry of Truth,” is being given power to not only make those determinations, but also do what’s needed to influence the American public to believe it.
 
“Here are a few highlights,” wrote a a blogger who focuses on government indoctrination through its Common Core education mandates, at What is Common Core:
 
“The new center will ‘counter propaganda and disinformation’ as defined by the center. ... The new center will use ‘covert or clandestine special operators and agents to influence targeted populations. ... The new center has 10 million dollars to pay select members of academia and journalism to ‘proactively promote fact-based narratives and policies,’ and ‘to expose and refute foreign misinformation and disinformation’ - as defined by the center.”
 
In fact, the law calls for the center to “provide grants or contracts of financial support to civil society groups, journalists, nongovernmental organizations, federally funded research and development centers, private companies, or academic institutions.”
 
Aaron Kesel wrote at We Are Change that, in layman’s terms, “the act will allow the government to crack down with impunity against any media outlet it deems ‘propaganda.’ The next piece of the legislation will provide substantial amounts of money to fund ‘counter propaganda,’ to make sure the government’s approved stories drown out alternative media and journalists who question the status quo.”
 
He continued, “Welcome to 1984.”
 
Several outlets like Zerohedge and others have picked up on the story.
 
Listen up folks. The Elites thought they had the election all wrapped up because of their propaganda campaign from their totally owned Main Stream Media. Well they just underestimated the power of the alternative news outlets. Thus, they started that campaign blaming the Russians for everything from hacking the DNC to spreading “fake news”.  From that, we now have facebook scanning posts for supposedly fake news, and they even enlisted “Snopes” to do some fact checking. However that’s sort of embarrassing because the people behind snopes are suing each other for embezzlement, and prostitutes.  Interesting.  Not to mention You Tube’s push to remove questionable video’s and Google’s attempts at hiding relevant searches.
 
This is going to become an all out war. The elites want everything that is against their narrative “shut down”.  They’ll start with the big guns like Alex Jones. Then drudge. Then Zero, then it will be me and you.  
 
I titled this “trying to remain festive” because we did just come through Christmas, which is a spiritual time in our family. And New years is even more important to me than it just being the dawn of a new year, see my very own mom was born at 11:59 Pm on New Years eve. The Doctor that delivered her wouldn’t give her the one extra minute on the birth certificate, that would have made her the first baby of the new year. ( My Gramdmom was SOOO ticked off about that. Even way back in the 20’s the first baby of the year got a lot of gifts and money)

So, this week I try, I really, really, REALLY try to keep my spirits up. But then the reality of the day always sneaks in. History majors that don’t need US history. A ministry of truth, set up by the very people that lie to us daily. On and on it goes.  

All I can say is that I’m trying my best to enjoy the “Holidays” and not let the world invade me. It’s not working so hot.   Take care folks.
 
The Market...

That darned elusive 20K.  For two weeks we’ve been waiting for them to make that last big push and take us up and over that big round number. But each time it got within about 30 points, it would simply fade back off some. Then they’d levitate things and we’d get close again.
 
The first question is....does it matter? Not really. 20K has no real significance to anything. It is simply a big round number like DOW 10K was. Interestingly, when we finally got to 10K, the market dipped and popped, dipped and popped and we crossed that line more than 50 times. (up and down)  I think 20K is no different. That said however, first we have to get there.
 
Today they came out of the gate rippin and snortin’ like they wanted it. But about 30 minutes into the day, the air started coming out. The word on the street was that a few big pension funds were going to be rebalancing their portfolio’s and an incredible 38 billion in stock might have to come for sale. So, instead of being up 30 points,  by noon we were red by 70. The S&P was actually worse. From up 7 it was down 15.

The selling didn’t stop. It wasn’t wild crazy selling, it was a buyers strike. People would put up stock for sale, and get no buyer, so they’d lower the price, over and over. It was a low volume adjustment day.  When the final bell rang, we lost 111 DOW points and 18 on the S&P. Many are saying that the selling was because of the pension funds rebalancing, but if that’s true, it will probably last into tomorrow and Friday.
 
So, DOW 20K just might not get here in 2016. That’s okay because frankly this market has no business being at 20K.  The question however is this...Most are thinking that we’ll hit the big milestone in January. But really?  What about all those that want to book some profits, but decided it would be better to wait for January to sell, so that they don’t have to pay taxes until April of 2018?  I’m sure there’s quite a few.

If we don’t get a nice bounce tomorrow I’ll probably sell out and book profits. I wouldn’t mind coming into the new year with no short term positions open. If they’re going to run things in January, we can always reload. But holding through a bigger dip right now, just doesn’t make sense to me.
 
I usually send out my “fearless predictions” for the new year just ahead of New Years. This year I’ll probably make a fool of myself in Sunday’s letter. 2017 has the ability to be one of the most bizarre years we’ve ever seen. Does the “Trump reflation” kick in and the DOW soars for  another 5, 7, 10K?  Do the Elites just back off and stop hunting for wars on cash?  Is 2017 the year when the IMF declares the SDR to be the new “interim” Global Reserve? Do the metals continue lower, or does the idea of even more global debt push them back up?  Does gold get a lift now that the Islamic council is going to allow Muslim’s to own gold as an investment?  There’s a ton of things to discuss and a lot of it is pretty “deep”. So do look forward to that, it should be interesting.
 
Have a great day, we’ll see you this weekend. 

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