- We become what we love and who we love shapes what we become.
- St. Clare of Assisi
Change in Plans
Sebastian planned to write about gold and precious metals this week, however with recent price action, he shifted gears. He saw three black crows in the daily chart. This is very negative, but gold and silver acted more like a consolidation pattern. The monthly chart will give a clearer picture. The calendar cycle says this is the best time for the precious metals until next February. It starts in India and spreads around the world. Patience is the word.
Meanwhile...
We noticed a stange, similar pattern that happens in the market. It usually appears just before the economy and market tanks. What is it, you ask? FRAUD.
Someone will take this observation and write a book on it. Our energy is better served to expose and inform you to make our government more accountable and to promote the general welfare.
Do you recall...Columbia/HCA? Rick Scott was the CEO in 1997 when the Justice Department showed the company cheating Medicare. Almost all of Scott's governing board were convicted of fraud to steal from the government program. Scott claimed he did not know what they were doing and this guy is the CEO? Rick gets off. He becomes governor of Florida with all his pay package. He is now their state senator. Can you see why our government leaves one doubting? Anyway, the big fraud case timed with a down year for the market. By the way, in irony of ironies, Scott today is publically attacking Democrats for medicare fraud.
How about Bernie Madoff? He got caught with his ponzi scheme in 2008. The market crashed. There are many other cases like Enron, World Com, etc. Space limits the cases, but whenever there are serious fraud cases, the market crashes.
Today
The Bulls are thriving. Records were set in the S&P and Nasdaq. The Dow also hit a new all-time high, but one aspect of a rally is how it appears in foreign currencies? It didn't. The transports are not even close. We told you this does not constitute a rally according to Dow Theory. In addition, the calendar is approaching September, the Dow's worst month. Then, we read about United Health Group (UNH). The Justice Department arrested 374 people associated with the company and another 96 licensed medical professionals for medicare fraud. The stock fell from over $600 to $240. It just bounced to $304. The news does not jive with its price. The estimated damaged caused by this firm is $14.6 billion.
We see this as one big reason why the two social programs are in stress. Congress needs to investigate the corruption that is taking place and not cut back on this point.
You can look to almost every nation on the map. Criminal investigations are taking place in S. Korea, Singapore, Brazil, Argentina, China and throughout Africa. Maybe this strange pattern is telling us something? Peace.
