There is some panic sentiment bubbling up in the mainstream. I am seeing it everywhere, even in what I would deem as high quality technical analysis. My own technical analysis is just my own, sometimes I trust it and sometimes I don't, but there is much better out there.
While the panic sentiment is justified, there is a story occurring in the upper echelons that is not being told to the 99% at the bottom. I would know, I am part of the 99%.
Right now, the US Federal Reserve is printing (publicly announced) up to 75 Billion USD per day, plus additional 30 Billion USD on the side for really bad cases. I have no idea what kind of money is being pumped into the system off the books, but we'll know eventually.
This money being pumped into the system is for one reason: The 1% at the top who are in the know are selling everything. Warren Buffet expects to have 150 Billion USD in cash and cash equivalents before the year is over, and you can bet that a lot of fat cats are doing the same.
This run on the banks should see stocks falling in price, but the prices aren't really falling, why? simple, stock buybacks.
In 1929, stock buybacks were a catalyst for the biggest crash in history, and were then declared illegal in the 1930's to prevent another great depression. Well, guess what? stock buybacks are not illegal anymore and businesses are buying up their own stock to push the valuation of their company higher, which gives bigger bonuses and dividend payouts to investors and shareholders.
Meanwhile, those in the know are selling like crazy, and because there is no price discovery mechanism in a stock buyback scenario, the ignorant retail investor sees stocks are still high and maybe buys some stock on a dip. Little do they know, they're losers.
My whole point of this post, is to warn people not to get fooled by what appears to be happening. Bitcoin, Gold, Silver, and every other store of value may temporarily drop in price as the fiat on/off ramps see record traffic. This is normal, and until the stock market crashes, Bitcoin is not going to be predictable or follow any technical analysis.
In a previous post or two, I showed how Bitcoin is in a bear trap. I believe it still is more than ever, because right now the smart investors are pulling money out of EVERYTHING. That includes bitcoin, silver, gold, you name it. Once they have their pool of cash and they are confident the slaughter is over, they will reinvest.
So don't be fooled by the panic sentiment. If you can't think like one of the 1%, at least know what they are doing and time your moves accordingly. I can't give people advice, but I can help to fill in pieces of the puzzle, and what is happening right now is a huge piece of the puzzle. The financial system is rogue and off the rails in the US, get out now or you can count your tears later.
Thanks for reading. stay safe and keep your head up.
