Critical Time in All Markets!

Folks, we are at a very critical time in the markets. The DJI, see above, is at its November low. Should it go below that, it is likely to go much lower. We will have to watch the transports, too, which are near their low, as well.

While it is not be scientific, from a practical perspective, the January effect looks ominous after last week's action. The first five days of trading in January in markets have been an accurate prediction of the rest of the year 31 out of 37 times. Unless the market really rebounds today, we can anticipate a troublesome year in the market. The DJI is -7.73 at this time, and the S&P -1.35.

The report of November unemployment as up 0.3% to 5% does not bode well for those in need of employment. Also, the Institute for Supply Management reported that the Purchasing Managers Index was down to 47.7 after 10 months of growth. These are not rosy pictures for the economy and point strongly toward a period of stagflation which I have been mentioning in the past.

Gold backed down below $860 over the last 24 hours. It is now at $859.70 and appears to be consolidating for another possible run at and beyond $870. I would expect a short term period of consolidation and for the next run to take it much higher. When is the big question. I do not know, but I believe it will not be long in coming. Bull markets continue as long as the fundamentals behind the bull remain intact. Certainly, the paper currencies are shaky at best since they are backed only by the full faith and credit of the governments and central banks which create them out of thin air. The faith in the U. S. Dollar is waning rapidly and will continue unless there is a total change at our earthly highest level. I do not see this on the horizon.

Gold remains at a +$65.70 or +8.27% over the last 30 days and +$255 or +42.14% over the last year. Silver +$0.88 or +6.14% and +$3.10 or +25.58%, respectively. Still going strong.

During this election year, let us urgently seek to select the Christian candidates who are committed to obedience to our Sovereign God. Let us not be persuaded by the sound bites of the media and the false promises of candidates. Let us diligently study their political actions in prior offices. We must educate ourselves and then prayerfully make our decisions and vote. Then, we can rest in the ultimate power of the Sovereign King Jesus, Who will elect the correct candidate.

Best to each, Doug