So it happens… as expected, US has entered another new war. History is on US side, bad history… Time and again, US justifies its actions by using its military might. Trump, campaigned on big government spending cuts, can’t resist himself and his egos… Remember the big military bash just a week or so ago to celebrate his birthday? This is not someone who cares much about spending cuts, especially it is not his money… US$40M+, down the drain…
The world was not looking. People are questioning this waste… what did he do in response? Start a new war front, as soon as many American Presidents before him. Think Afghanistan… who had equipped them? Then, came the infamous 9-11, which resulted in US war with them. Then came the Iraqi war, where US justified their invasion based on fake information. Now, it’s going to be Iran… how could Donald Trump resist this temptation to show off US military might? No, he couldn’t… not when Israeli military and intelligence agencies have done the hard work of destroying Iranian air defence capabilities.
Donald Trump, in his usual self, can’t resist his arrogance and bullying antics. Who cares if Iranians are nuclear weapon ready? The world history is written by the victors.
Guess what would be the final outcome to reshape Middle East? Look at today’s Afghanistan and Iraq. Who are controlling them? Is it American or Israeli friendly allies? Far from it… when it is all done and dusted, when Americans left those places they complacently destroyed, they left it to those all local militants to benefit. The only sufferers will be the locals, who have lost their loved ones and homes.
It feels so strange hearing the same people from US telling China NOT to take Taiwan back by force, yet blatantly invading or destroying nations at the blink of an eye.
The world does not feel normal right now. The economy also does not feel normal. The stock market indices behaviour even so!
There is just so much underlying uncertainty and undersurface current, all waiting to burst into the open! It seems more and more apparent to me that it is not a “if” but and “when” this will happen. I hope this holds a little longer, but I have less confidence by the day.
US and Israel seem to have a free ride now. Iran appears powerless to stop these two powerful militaries. Obviously, I don’t have military information on my side, but I know that we should not put too much pressure on any containers. When we do, they simply burst! Same as for Iran. I do not know what they are capable of given its allies have sufficiently been weakened by Israeli over the couple of years. Iran is obviously at its most vulnerable state. That makes them a lot more dangerous if you ask me.
Finally, take a look at a couple of "related" charts and see what you make of them.
If you look at them, gold, silver, platinum and palladium are all bullish, obviously is oil.
On the other hand, bitcoin is facing pressure and looks like coming down. If you look at Nasdaq chart shared above again, although its uptrend is intact, it is lying on its trendline and remains vulnerable. Breaking through that trendline next week could trigger nasty vicious cycle, especially this rally does not make much sense. Bubble bursting moments are always sobering... with people rushing to the tiny exit door all at once.
Guess what? If you are going to be one of those caughtnaked when the tide resides, you might want to consider protecting yourselves. Best to buy some insurance even if next week does not turn out too bad. Remember how we get to today's big 🐂 ride? A lot of market participants are still ignorant and have not experienced a real downturn. They will continue to enter to support the market. That will give you the opportunity to reconsider your position.
Stay safe, buy protection like precious metal group and oil. Maybe also shorts some Nasdaq like what I did.
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