Palpara Merchants

Here are a few more setups. Trading has been tough in breakout setups lately, so stops are essential.

Break outs seldom working right now so here are some setups that include a couple support bounce plays:

The rotation out of FANG and into cyclicals is alive and well. Here are 3 setups on cyclical stocks attempting to break out today: break out pattern in white, buy points in green, and stops in red.

In July ,1862, Saint Don Bosco of Italy recorded a dream he had: a vision of the red horse of the apocalypse. From this dream, he believed God was warning him about the first wave of evil to fall upon the earth during the last age of man.

Five years later, Karl Marx would publish Das Kapital and the Communist Manfesto, which Marc and Fredrick Engels co-authored more than 20 years previous, was gaining popularity with the socialist movement.

The red horse in Don Bosco’a dream was the ideas of Communism that led to Bolshevism and Natzism.

The war that is the red horse would soon be unleashed on humanity with the total war of destruction in 1914.

In the summer of 1917, the town of Fatima, Portugal witnessed a Marian apparition- where Mary revealed that unless Russia was concecrated to her, it would spread its errors throughout the world. This was the year of the Bolshievik revolution, Russia was never consecrated and the intensity of WW1 increased.

The destruction lasted through WW2, the Korean War, Vietnam War, the first wars in the Middle East and the wars on terrorism and ISIS. The 100 years of war now culminates into the infanticide of the present, where roughly 20% of all human beings conceived are killed before they are born. Society is telling us they are not humans. The first step in a genocide is always to dehumanize the victims.

After being immersed in war for a century, there is no place on earth left for warfare, and there are no enemies left to make war with, so we make war in our own bodies with our own children. The age of war is coming to a close as there are no more fields of battle.

Next we should look to the black horse to bring the great hyperinflations to our economic systems: A days wages for a loaf of bread.

We have set up our economies just as Germany after WW1, before the great hyperinflation that brought about Nazism. However, this time all the large world economies are setting up their economies in the exact same way. This time the hyperinflations will be global events.

As this decade unfolds, it should become clear to most that we are ushering in the black horse of the apocalypse. But we won’t call it that, just as today we don’t refer to the past 100 years of war by its true identity: the red horse. The code for the black horse will be “economic crisis.”

The difficulty of understanding our situation is compounded by the fact that the outcome is deterministic- we can change course to prevent this from happening to us. If we choose to as a unified society, we could postpone this prophesy from being fulfilled…

Listen to any market commentator that is critical of the Federal Reserve, and you will, in time, become aware of the commentator’s belief that all of society’s problems- inequality, rioting in the streets, political discord, etc. are all problems stemming from failed monetary policy. 

Market commentators are conflating cause and effect. QE is not the cause of societal breakdown. Rather, QE and the breakdown of our money are the effects of societal breakdown. This breakdown of societal bonds is what always happens in secular society. Always, every time. Same thing happened after the French Revolution when the new zeitgeist of secular society permitted the population to consent to Napoleon’s conquest- and the destruction that ensued across Europe. 

The reason a secular society is destined to breakdown lies in the faults inherent in misguided leadership. Misguided leadership due to secularism results from errors of mental models for interpreting reality through a secular world view. Secularism, as a belief system, necessarily requires adherents to build the social structures that form a civilization (governments, laws, economies, cultures, businesses, etc.) in accordance with a subjective morality- the social structures are for the good of the people, but “good” is a subjective ideal. As an extreme example of how this subjectivity can go awry, one can look to the society built by Hitler. He could not have accomplished the scale of destruction he did unless the population did not think, to some extent, he was working for the good of the society. 

Men that refuse to acknowledge a Creator, and thus, a morality defined by the Creator— an objective morality— are bound to compounding errors in judgement; for they do not possess and accurate understanding of the base reality in which we are all occupied. The foundations of their thinking are faulty. Higher order thinking therefore, cannot be stable with an unstable foundation. So men who rise to leadership positions in a secular society will naturally possess qualities and thoughts a secular society finds beneficial. Because these qualities of leaders are not formed in accordance with an objective morality, the decisions they make and the social systems built as a result of their decisions will lack the necessary feature of integrity that is for the objective good of the people. As a result of this lack, society as a whole will suffer. 

We see the results of failed leadership now- a failed monetary system being perhaps the most prominent. We can see also other stresses that will eventually lead to outright failure in other social systems- our democratic system, healthcare system, education system etc. 

The solution for fixing failed social systems will elude us as long as our leaders are lacking the knowledge of our base reality— that there is a Creator and an objective morality. 

Gold had two things aligned against in the past two weeks:

1. Munchin pushing for $1T when house Dems were pushing for $2T.

2. Joe Biden’s chief economic advisor in 2014 said “kill king Dollar” in an NYT op-ed. Maybe something Vice President Biden did in the past two weeks lessened his chance of a slam dunk win this November…