Private Blog Metals Update

The pound sterling had a smashing day ranging between 15016 and 13226; penetrating the 2009 low of 13508 as well as the 2001 low of 13680. That leaves the prior low that formed in 1985 of 10520 on the cash (103 futures). This is rather important for it implies that we should see that test of the 1985 low as soon as 2017. A year-end closing below 14050 will signal that should follow course. Keep in mind that our model has been projecting a significant dollar rally and the weakening of the EU will make that happen.

We have two incredible important numbers coming into focus for the closing of June: 13660 and we also have a Quarterly Bearish at 13680 and 14280. Obviously, if we close June below 13660, we should expect the pound to decline sharply in the months ahead.

On the Weekly level, a closing beneath 14000 will keep the pound in a bearish position. A merely closing beneath 14300 today will also signal that the pound is weak. There will be bearish sentiment, but this will begin to subside as people start to see that the EU cannot be sustained without the UK.

The European Union peaked back in 2004. It is done – just stick a fork in it. The arrogance of Brussels and their anti-democratic approach to force their elitist views upon the people is coming back to haunt them. Unless Brussels reforms, we will see the collapse of the entire EU structure right down to the euro.

Exactly on our cyclical model, the UK voted to leave the EU (52% to 48%) in a historic referendum after 43 years (half 8.6). David Cameron has announced he will resign as prime minister in October, and all one can say is good riddance. Cameron is stepping down despite the fact that 84 Eurosceptic Tory MPs signed a letter calling on David Cameron to continue as prime minister whatever the result of the referendum. That was just a joke for Cameron betrayed his own country. It would have been inconceivable for Cameron to remain as prime minister after making the biggest political decision of his life that has been proven to be spectacularly wrong.

Foreign Secretary Philip Hammond has said that voters have “spoken clearly” and the government’s job is to “get on with that decision, protecting the economy and doing all we can to get the best outcome for Britain.” This is the best decision for Britain; otherwise, Brussels, which has become the sinking Titanic, will drag the country down. The attempt by Brussels to extinguish democracy with its arrogant attitude that the elite know better will now begin to set in throughout Europe. Already, Italian Prime Minister Matteo Renzi tweeted: “We have to change (the EU) to make it more human and more just, but Europe is our home, it’s our future.”

The pound fell to its lowest level in 31 years on exaggerated panic. Europe is nothing without Britain and NATO will certain not change. Britain provided the military backbone for Europe. This is merely about the UK gaining its independence. The United States would NEVER allow its laws to be written in a dictatorial manner by the European Union.

Nigel Farage told supporters that June 23 should go down as “our Independence Day.” Scottish First Minister Nicola Sturgeon sadly said Scotland contributed significantly to the “remain” vote across the UK, and the Scottish people “see their future as part of the EU.” So we have yet to see Scotland leave the UK, but this time it will quickly discover that the EU is crumbling.

The Act of Union that formed the UK was under Queen Ann in 1707. Applying the 309.6-year cycle brings us to 2016.6. Therefore, we may indeed see an independent Scotland, but it will soon find out it joined the sinking ship. Meanwhile, in Ireland, Sinn Fein said Britain’s vote to leave the EU has “very significant implications” for Ireland, and it called for a referendum on a united Ireland.

Of course, there are those in denial. Austrian Chancellor Christian Kern warned Britain’s exit would harm the other nations. “I do not fear a domino effect,” Kern said, yet our model does show this will unfold. Kern continued, “Europe will lose status and significance in the world because of Britain’s step. The long-term economic effects will also be felt for some time.”

Meanwhile, the Estonian Prime Minister Taavi Roivas said Europe must “work hard” to protect the EU’s unity and that Britain’s departure was a “great loss.” Article 50 of the 2009 Lisbon Treaty has been overlooked, but that, effectively, is the EU exit button that allows a country to start formally withdrawing from the European Union. Once Britain has activated this clause, it has two years to negotiate its departure with the remaining 27 members of the bloc. Among the terms to be discussed are trade tariffs and freedom of movement.

The hacker Guccifer has hacked Hillary’s email server before. He has now hacked the Democratic National Committee. Reports state that no financial records were obtained. He has published a brief portion showing their top donors. Here they are: (Guccifer 2.0 DNC’s servers hacked by a lone hacker – GUCCIFER 2)

When Hillary was the Secretary of State, she refused to appoint an Inspector General to monitor her department. It was clear that she did not want anyone snooping around so she could hide her private emails and greed. She even sold positions on the International Security Advisory Board. Commodities trader Raj Fernando “bought” his appointment to a top-secret nuclear weapons security advisory board with no such experience. ABC News chief investigative correspondent Brian Ross broke the story after linking Mr. Fernando’s appointment to the prestigious International Security Advisory Board in 2009 based on his donations to the Clinton Foundation.

Recently released emails, acquired by Citizens United through the Freedom of Information Act, show that career department officials questioned Fernando’s appointment because he had no national security experience. Still, other emails show that Hillary and her Chief of Staff Cheryl Mills bypassed the normal nomination process to put Mr. Fernando on the board. This is outright treason, and Obama is clearly in on this conspiracy by refusing to indict Hillary simply because she is the Democratic candidate.

BREXIT now up 516,302

Gold is rising with resistance at 1362, support in sterling lies at 12900, and resistance in silver 1850.

This is what happens in a panic. Dealers step back and spreads widen. Sell and buy orders at the market are simply filled as they come in. It appears the bookies got it wrong and the government believed its own fake polls and were not prepared to rig the vote properly. The “leave” vote is now running almost 54%. Of course, this is not over until the fat lady sings, or in this case, Cameron.

The pound fell to a new low for the year. You can see we had technical support at 13628 followed by 12956. Cable has fallen so far to the 136371 level intraday. However, breaking this level at the 13600 area will focus our attention on 12956 level which is more important. This pattern reflects that we should now penetrate the 2009 low and ultimately reach our target to retest the par level by 2018. Our Monthly and Quarterly Bearish Reversals are 13660 and 13680 respectively. These will be extremely important next week.

Despite the chaos, if the “leave” vote wins, this will be fantastic for it will save Britain from the real devastation that lies on the horizon. However, even with a “leave” victory, it will take two years of negotiations to pull this off. It is not an overnight deal.

The computer was correct in projecting a BREXIT victory. However, keep in mind that this will shake the EU and we should see the capital flows begin to intensify into the US dollar.