- What you risk reveals what you value.
- Jeanette Winterson
November and 😍
The negative shadow of September and October for the stock market has passed. The government still refers to the market has the reflection of our economy. We have told you repeatedly that this connection has been severed. Nevertheless, they control the narrative. We note one unusual bit of data. The inflation figures came in at 3.4% and lo, and behold, the GDP for the quarter came in at 3.4%?
Houston, we have a problem.
The recent revelations of debt by big tech has stunned some investors. They would love to shrug it off, but the numbers cannot be easily forgotten. Google says it spent over $500 billion on AI and data centers. They, like all their fellow hi-tech competitors, show few rewards. Amazon is the only one showing improvement, but improvement is not a profit. Their cap/ex for 2027 is $220 billion. It gets worse. Google says 2027 needs another $924 billion. We told you about Oracle. We told you about CoreWeave. We told you about Meta and its new issue offering. By the way, Nvidia and Advanced Micro each purchased $5 billion and the rest was gobbled up. We told you about the BS from Larry Fink, however no one was counting on the Binance news.
The good gets thrown out with the bad.
When the news of the hack on Binance reached the media on 29 Oct. (does that date ring a bell?), the market fell like a house built on sand and flood waters rushing against it. Intel fell by 28% just on Friday. This is its worst day in 50 years! They were not alone. Gold was hit hard, but the selling was tied to the liquidity of the metal. The money was needed by investors to avoid margin calls. Have a doubt? Well, margin stock buying just hit a new all-time record at $1.5 trillion. All this buying has pushed the CAPE ratio to 41. This is an extremely dangerous level. The last time the ratio was this high was the dot.com bubble of 2000.
Anyway,
Did you know there has been over 10 crypto hacks just in 2026 and we have two months to go? Bitcoin was sold as a safe vehicle that would not be diluted with excessive production. From the very beginning, we, at Evolution have been against this new form of money. It is just moving money from big banks to this new platform. They both deal in fake money. Only gold is real money, but critics come up with ways to deter your thinking like gold does not generate interest like banks offer and bitcoin has shown fabulous upside. Well, the charts reveal a different story. Bitcoin touched $112,000 last November and this November it closed at $77,693 on heavy volume. Support is at $62,500 amd the low is at $57,500. There are a lot of people under water. The first sign will be the 200-day moving average which is $73,100. All this leads to...
Latest
Bitcoin froze trading. The co-CEO, Yi He stated that trading will resume Sunday. Dear Reader, just recently private funds suffered a case of the runs. They limited withdrawals. Things have quieted down on the surface, but we suspect there is still a problem in private equity.
We believe withdrawals in bitcoin will have the same results. They will be limited and the result will push the value down to test the lows. If pierced, the flood waters will cause a lot of problems to the market and our economy. The bullish outlook for November has a new shadow and of course, the election results...Peace.
