Debt Is Crushing Us

The Case for a Market Melt Up. [Morning Reckoning] December 14, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Debt Is Crushing Us Asti, Northern Italy December 14, 2023 [Sean Ring] SEAN RING Good Morning Reader, Yesterday evening Eastern Time, the Paradigm Press 7 Predictions Summit was live on Zoom and YouTube. I hope you joined us. Seeing my friends and colleagues and conversing with our incredibly loyal and charitable viewers was an absolute blast. To think people would stay with us for four hours delights me to the core. Of course, of the over 7,000 people on the call, most wanted to hear what Jim Rickards, James Altucher, Byron King, Zach Scheidt, Ray Blanco, and Greg Guenthner were predicting. Even an AI version of Alan Knuckman put in his four cents. (You never just get two from Ole Alan…) But I want you to get right to my prediction. And here it is: Christmas is coming early… and it’ll stick around for a while. Click on the link below to hear my full forecast: The big two predictions I made: - The S&P 500 will reach at least 5,000 before selling off into the election. The higher the SPX goes before the cuts start, the likelier it’ll hit 5,000. - Gold will reach $2,500 per oz. before August. Gold and gold mining stocks will finally take off, but only after the cuts start (Powell’s Pivot). [Urgent: Currency Wars Alert “Worst case scenario is almost inevitable” -Former Pentagon Insider]( In the 2011 book, Currency Wars , it was warned that the U.S. was engaged in a currency war. And that these wars: “Degenerate into sequential bouts of inflation, recession, retaliation and actual violence as the scramble for resources leads to invasion and war . ” Now with Putin invading Ukraine…Rising tensions with China… Inflation, recession, and supply chain issues all hitting the U.S. economy at the same time. It seems as if some of these worst fears have finally come true. [That’s why you need to watch this urgent video message.]( To update you on exactly what you need to be doing to protect yourself. Because if history is any indicator, this will not end well. [Click here to view this urgent video message.]( [LEARN MORE]( Predictions are a risky business. But I’m confident we’ll see a big rally into 2024 before things fall apart. There’s such a disconnect between the real economy and the stock market it would be foolish to short now. In fact, you want to be quite the opposite. To wrap up, also gave some insights into what to look out for when you’re trading, if you want to be successful. You can go right to that portion of the video by [clicking here](. That’s all from me today. Enjoy your weekend and I’ll see you next week! All the best, [Sean Ring] Sean Ring Contributing Editor, The Morning Reckoning feedback@dailyreckoning.com X (formerly Twitter): [@seaniechaos]( [New AI 62 Times Smarter Than Einstein?]( [Click here to learn more]( AI is already 100,000 times faster than humans are… And by 2025, Elon Musk predicts AI will also be “vastly smarter” than any human. Masayoshi Son, the CEO of SoftBank goes as far as to predict that, over time, AI could reach an IQ of 10,000… That would make AI more than 62 times smarter than Einstein’s IQ of 160. Can you imagine the possibilities of an AI supercomputer which is 100,000 times faster than any human and has an IQ of 10,000? [Over time, AI could be used to cure cancer, enable a new age of space travel, and much, much more]( . That’s why AI is set to change the world in ways almost nobody can imagine today. And anyone who invests now – while this new technology is still in its infancy – could see the chance at making generational profits. [Click here now to see the 3 tiny AI stocks we believe are best positioned to profit]( . [LEARN MORE]( In Case You Missed It… Wall Street’s Next Big Test Greg Guenthner, Editor [Greg Guenthner] GREG GUENTHNER Good Morning Reader, Plus: An important update on my latest gold trade! As the year-end melt up continues, I can’t help but reminisce about the insane rallies we enjoyed during the height of the Covid Bubble. The holiday rally of 2020 featured a massive crypto rally and subsequent NFT frenzy, meme stock silliness, and unbelievable gamma squeezes that launched stocks into the stratosphere into early 2021. It was one of those rare market moments where no analysis, charting, or common sense was required to rake in astronomical gains. If you had a brokerage account and could scrounge up a few bucks, you had a great shot to grab some of the “free money” flying around… Of course, all periods of irrational exuberance end the same. Meme stock mania and most of the gamma squeezes peaked and abruptly reversed during the first quarter of 2021. The crypto market faltered shortly after, while tech-growth pounded the final nail in the bubble’s coffin in Q4. Most self-proclaimed market geniuses gave back most (if not all) their hard earned gains as the grinding bear market of 2022 emerged. Today, we’re more than two years removed from the great growth apex. But we’re beginning to see signs of life from some in these former bubble stocks and sectors. If you’re looking for strong trade candidates, most of the familiar players from the Covid Bubble are back in the spotlight. The crypto rally is accelerating this week as Bitcoin makes a run above $40K (it was threatening to break below $25K as recently as mid-September). Short squeezes are triggering across the market’s most beaten-down stocks. And many of the formerly hot tech-growth names are breaking out of big bases following nearly two years of abysmal performance. Tech Growth Snaps Back During the summer months, we discussed the resurgence of the ARK Innovation ETF (ARKK) – and how many of its beaten-down components were nearing significant base breakouts. The decimated tech-growth names looked as if they were finally catching higher as market conditions slowly improved. Many of these stocks began the base building process in late 2022. After several head fakes and retracements, investors were starting to see these stocks sustain breakout moves and actually extend higher. By July, ARKK had rallied 60% since the beginning of the year. But the stocks fueling the run weren’t all “easy” trades to ride in Q1 and Q2. In fact, the ARKK comeback has been anything but a straight line. The initial snapback began right as the calendar flipped to January. ARKK rocketed higher by nearly 50% before it flamed out at the start of February, giving back much of its year-to-date gains just as quickly as it rallied. Even more concerning was a brief drop below $35 in May as ARKK tested its March lows. The fund had already slipped below its 200-day moving average and appeared destined for lower prices. But a big breakdown never materialized. That $35 test held, and ARKK managed to vault off its 200-day moving average following the regional banking crisis scare. It steadily pushed higher – quickly approaching its August 2022 relief rally highs. Yet once the summer momentum faded, the ARKK stocks encountered some serious turbulence. By late October, ARKK had dropped 30% from its 2023 highs. Some of the individual components were even cut in half as investors worried the market was slipping toward another ugly breakdown. It was another big test for these former Wall Street darlings. They would either find support and bounce – or tumble into oblivion. Of course, we all know what happened next. Thanks in part to an abrupt sentiment shift, the market’s heating up as the year winds down. The tech-growth names have done more than just bounce. These stocks are popping left and right – and there’s still time to capitalize on their powerful breakouts. While ARKK still has some work to do, it’s nearing a major breakout level at $50. If it can post a convincing move about this level, it could sustain a bigger rally into 2024. If the recent rally is any indication, it’s ready to make the move. ARKK jumped 35% in November, notching its best monthly performance since its inception in 2014, Benzinga reports. I never would have guessed last month was ARKK’s strongest ever – especially looking back on its incredible pandemic ascent. Even before the Q3 correction, we’ve talked about keeping an eye out for individual tech-growth stocks completing big bases. Now, it’s time to strike as the year winds down. Not every tech-growth stock is going to be a big winner. But the ones that are able to harness this newfound momentum will provide fast returns heading into 2024. What’s Going On With Gold? Gold futures quickly shot above $2,100 to kick off December trading. And I’ve told you a quick jump to $2,600 is possible before gold even thinks about consolidating… once we get through some of the whipsaw action. But gold has somehow fallen back into its range below $2K once again. The VanEck Vectors Gold Miner ETF (GDX) is also struggling. What gives? I’ll take you through the charts[this morning at 11 a.m. Eastern on Top Trades Live!]( I’ll discuss the maddening action we’re seeing in precious metals right now. You’ll also get to see some of my favorite actionable trade setups for the week. [Click here to join me!]( Best, [Greg Guenthner] Greg Guenthner Contributing Editor, Morning Reckoning feedback@dailyreckoning.com Thank you for reading The Morning Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Sean Ring] [Sean Ring, CAIA, FRM and CMT]( is a former banker and financial educator and is the editor of the Rude Awakening. Sean has trained interns and graduates from Goldman Sachs, Morgan Stanley, Citi, Bank of America, Standard Chartered Bank, DBS (Singapore), the Abu Dhabi Investment Authority (ADIA), Bank Indonesia (the central bank), HSBC, Barclays, RBS, and BlackRock. He knows the global economy is being corrupted by forces that most people can't understand and has used his unique and worldly experiences to help people navigate the markets. [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. 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