We’re getting closer to the 224 years cycle in France, with the fall of the monarchy back in august 10th 1792 when the republican crowd stormed the King’s palace in Paris. This crucial day is also known as the “second revolution” for the left revolutionaries succeeded in their attempt to topple the moderate reformists led by Lafayette who were supporting a constitutional monarchy.

Well, maybe the civil war within the “left” will turn into the full collapse of the french socialism and its republican regime.

REPLY: Yes, the 224-Year Cycle for Political Change in France hits now in 2016. That combined with BREXIT and so many other cyclical trends, including the Civil Unrest and War Cycles, are all combining to make Europe very volatile.

The BREXIT vote is the result of a promise by British Prime Minister David Cameron made back in 2013 when he was besieged by the increasingly assertive anti-European Union wing of his own Conservative Party. To placate the rebellion brewing against the loss of sovereignty to Brussels, Cameron made a promise that he intended only to keep a short-term peace before the 2015 general election. He promised that if re-elected, he would hold an in-or-out referendum on continued British membership in the EU. He never imagined that it would take place, no less win. It certainly appeared to be a meaningless gesture — a relatively low-risk ploy to deal with a short-term political problem to ensure he would be prime minister. Now comes the unexpected consequence.

As BREXIT comes on Thursday, the betting markets are wagering that Britain will choose to remain in Europe. That seems to be due to the fact that they know the vote will be rigged. The polls suggest that the outcome is still too close to call and has a bias toward leaving. There is certainly NOTHING to gain but continued pain and suffering if Britain remains for Brussels will simply plow down all remaining rights to force the ideas of the elite upon the rest of Europe. They assume they alone are right and to hell with public opinion because the people are too stupid to realize what is in their best interest.

On Tuesday, Cameron tried more scare tactics, and warned that a decision to leave would be an “irreversible” choice. He was trying to scare the elderly voters, many of whom tend to favor leaving the EU. Cameron urged them to think about what they would bequeath to the next generation but failed to tell the truth. Like Clinton, they just say shit without any backing whatsoever. Cameron said, “Above all it is about our economy.” Using the government’s own data, economic growth in Britain has gone progressively lower since it joined the EU in 1973. We will soon see how all these lies and scare tactics fair. Our computer shows that BREXIT should win. But it also correctly forecast Gore would beat Bush. The Supreme Court rigged that vote and handed it to Bush after refusing to wait for the final count from Florida. When that count was in, Gore should have won. Here too, BREXIT should win, but the stakes are far too high for Brussels to allow any honest vote at this stage in the game. The bookmakers may be right not because of the people, but because of the corruption.

All we have been hearing are claims that if China sends the dollar flooding back to America, the dollar will become worthless and hundreds of businesses will go broke overnight. The gold promoters put out such wild claims and have no idea what they are saying or the type of world that would unfold. It is not in China’s self-interest to dare to do such a thing for their own economy would collapse. Jobs would be lost and unemployment would soar, leading to another revolution.

These people yell the same thing all the time. They want to see America destroyed so they alone can become wealthy and look down upon the rest of society while kicking them in the gut and rejoicing in their pain. I really do not understand such hatred. Of course, they do not want to talk about how U.S. corporations have $2 trillion+ in cash offshore and only about 10% resides in U.S. government debt.

These scenarios are absurd. When China’s reserves decline, it will be because capital had fled China. This is precisely the opposite of what these people are saying. China has sold U.S. Treasury bonds and U.S. equities to raise cash to support the yuan to boost confidence. It has nothing to do with being bearish on the United States. China has no such interest in destroying the U.S. economy or that of Europe. To do so would destroy their own economy and that would only lead to revolution.

These scenarios are just pathetic. China has been suffering from a lack of confidence and capital has been pouring out of the country. The Chinese are the big-ticket buyers of real estate in the United States. China’s reserves have been collapsing as capital has fled. In fact, March was the first time in five months that China’s foreign reserves rose to $3.213 trillion, which was up by $10.26 billion from the end of February, according to data from the People’s Bank of China. The numbers from April showed a second consecutive monthly increase of $7.09 billion to $3.220 trillion.

As far as China’s gold reserves, they have 1797.46 tonnes (57.7 million ounces) or about $75.1 billion at $1300, which amounts to only about 2% of their reserves.

The problem with all of this nonsense is that they are desperate to create a reason to sell gold to mislead investors. You can fool people sometimes, but not all the time. When they listen to these wild scenarios and they do not pan out, they will lose confidence and stay away from gold. So the promoters could care less about the veracity of their claims. All they care about is selling gold for a profit to investors.

Gold will breakout, but not for such absurd reasons.

Our models have been targeting 2018 for the last 30 years as the first potential year for a monetary crisis and reform. There was a shot that we could have doubled the Dow and everything would have bottomed on the first potential, such as gold in 2013 to 2014, and then turn up into that target. But the markets have been dragging this affair out so long that it looks like this is the beginning rather than the end point, and the real chaos is just extending into the next 8.6-year cycle. This is why we have the Reversal System, for it provides the numbers we have to achieve to confirm the trend. Just as we missed the 17800 on the Dow for the close of May, everything happens for a reason.

The vast majority remains bearish on the Dow, and, of course, the gold promoters always say the dollar is worthless, but their forecasts have not changed for decades. The Dow has all these people claiming it is overvalued and has to crash. Then we have Fed watchers who just focus on domestic numbers and ignore the entire world trend.
It is clear that everything is within a staging position in preparation for something really big. While so many say this is the end of the world and everything will go to zero, such events have never corresponded to their scenarios in history.

The most likely course of action has not changed. When confidence in government collapses among the GENERAL MASS PUBLIC, everything will breakout. Listening or convincing oneself about fiscal mismanagement of government is nice, but the general population is what counts. They are the movers and shakers. We merely jump to their actions.

So the computer gives us the numbers and the time. They simply have to be elected to confirm a trend. All I can do is articulate the points and then say here are the points and the time.

What we are facing is nothing anyone has ever experienced. So it is not going to be easy to come up with some “gut feeling” or opinion that matters. Whatever we “think” will or will not happen is irrelevant. Everything is changing. Financial analysts are failing everywhere. Hedge funds are losing money. The only way to trade is with something definitive without the personal opinion.

The days of searching for some guru who is never wrong from an opinion perspective are gone and only fools seek such ideals. We are heading into the eye of a financial storm that will topple governments. The future is being constructed before our eyes if we wake up and just look. The hardheads always lose everything because they are too stubborn and incapable of adjusting their investment strategy. Those looking to buy growth or value in equities will also lose their shirt for this is not a normal trading affair.

While the devastating book is now out entitled Crisis of Character, it effectively divides Hillary as creating all the financial scandals questioning her honesty and Bill with the sex scandals as his White House felt like a ‘brothel’, according to former Secret Service agent Gary J. Byrne. The die-hard Clinton supporters would never look at facts. But this book is really explicit with regard to the scandals revealing players never know before. It has been well known that Hillary tolerated Bill’s sex escapades because she really was long rumored to be a lesbian. We will see as we move forward, but the likelihood of this actually stopping Hillary amounts to zero. The Republicans refuse to support Trump or raise money for the campaign. So we will see just how crazy this entire election turns out to be. It really exposes just how these sorts of people deem themselves worthy to rule the masses.

The majority of the volatility within Asia appears to be concentrated within the Nikkei and the JPY. The Nikkei opened around 1% lower as the currency gapped to the 103 handle, but by the afternoon session it recovered as JPY retraced. Shanghai really could not provide any guidance as that market continues to drift lower. Even in Asia, the consensus remains firmly fixed on BREXIT and even this evening’s address by Janet Yellen will be overshadowed.

Dealers were questioning today whether UK remaining within the EU has already had its euphoric rally, given the sway seen in recent polls and the markets reaction. Late this evening, the core safe-haven bids are receding (gold down $20 or 1.5% and bonds steepening back out, the DXY and its recent loss) all this and we are not a vote has been cast yet! Positive day for DAX, CAC, IBEX, and FTSE (all up around 0.35%) probably helped by a better than forecast ZEW release at 19.2 compared to a previous 6.4 previous month.

The US markets were waiting more direction from Yellen’s congress address but being so close to the recent FED meeting, not that much was expected. Market players are certainly looking for direction but were disappointed if they were waiting for tonight’s address. A modest gain for all indices on the day and we saw a small increase in the VIX (up to 18.5) but even in the US dealers main focus for the week is Thursday’s BREXIT vote.

Treasuries continued to drift even as we heard Yellen’s playbook and their concerns surrounding domestic and global matters. 2/10 steepened 1bp to close at +96bp with 10’s closing at 1.71%. In Germany 10’s closed 0.05% (-1bp); closing the spread at +166bp. Italy closed 1.44% (+2bp), Greece 7.7% (+10bp), Turkey 9.38% (+6bp), Portugal 3.14% (+2bp) and UK Gilt 10yr closed 1.28% (+5bp).

Here is a mock-up of the Trader version we will release to attendees of 2015 and 2016 WEC for a 30-day trial. The final round of reports for the 2015 WEC attendees will be sent out shortly. We plan to release a report on asset allocation and a report on the pension crisis. Our reports have been delayed due to programming and the reaction rally we were expecting (e.g. the euro moving back to 11600). Many attendees have written to us to say they appreciate having access to the first preview of Socrates, and that the delay in the reports has actually extended their current value.

Nevertheless, this has been only a preview of version 1.0. We are incorporating much more for the Trader version. Our goal is to provide a global platform that is integrated. Using the same system around the world provides familiarity when looking at the arrays and prices in any market to provide that instant perspective.

The trader version will have a map to the right where the resistance and support will be found to show the gaps. This is a unique system that I use personally in day trading. Here you can see the points where there is resistance (green) and support (red). At first glance, you will notice every tick is often highlighted, but look at the column to the right. There you will see the number of hits that fall on that number for the day.

This allows you to see the gaps that are technically driven by time separate and apart from the Reversal System. This is the daily matrix for June 9, 2016, in the British pound futures.

The range that day was 14527 to 14446.

Looking at this matrix you can see we have a strong cluster of support from 14449 to 14439.

On the upside, the cluster of resistance begins at 14547 while the high that day was 14527.

Overlaying the Bearish Reversals, the day before the pound closed below two Daily Bearish Reversals at 14560 and 14590 closing at 14504.

The next Bearish Reversal was 14465 and then the next day, June 10th, opened below that number. The cluster of support for that day extended down to 14404.  The next Daily Bearish was 14375 with a gap down to 14270 followed by another gap down to 14120 and finally 14090.

Combining this Matrix with the Reversals, we can see how and where panics unfold. June 10th opened at 14466, reached a high of 14481, and then turned south to drop sharply to 14187 closing at 142.69.  June 10th elected 14465. 14375, and closed 1 tick below 14270. This left 14120 and 14090 below the market.

The Weekly Bearish was 14415, which was elected on the Friday closing at 14269.

On Monday, June 13, the pound fell further stopping at 14124 to close at 14233 holding both of these Daily Bearish. The next day, June 14th, the market fell to 14099 closing at 14112 electing the next Daily Bearish of 14124. Finally, the low came two days latter on June 16th dropping to 14021 and closed at 14216.

The Weekly Bearish were 14005, 14055, and 14150. All three held at that time.

Defining the gaps helps us see where the big moves come into play. This is a review of just the Daily level. The same system is provided for the Weekly, Monthly, Quarterly, and Yearly.

We are striving to provide a quality service that is impartial, entirely computer driven, and in that sense, independent of human opinion and emotions.

This is the only way we can move forward to become STUDENTS of the market rather than complaining and looking for the next guru.

The Supreme Court ruling in Utah v Strieff awarded the police total freedom to stop any citizen, at any time, to do whatever they desire. The Supreme Court determined that the “poisonous fruit” of a police officer’s stop of a citizen can be used against them at trial. This has wiped out, in reality, any constitutional protection you thought you had. This is a sad day for the United States, for the Supreme Court has officially created a full-blown police state and clearly has no intention of honoring why this nation began the entire American Revolution —  to prevent illegal searches that allowed the king to look for anything he could use to prosecute citizens.

The Supreme Court ruled that even though the officer had initially violated a person’s rights (in other words, the Constitution) the officer’s conduct was “at most negligent” and the result of “good-faith mistakes.” This language is a wink and nod to the police who only have to claim they made a mistake that was not intentional and they walk free. We have witnessed police outrageously murder citizens, but the police officers involved are usually not charged. Now, with this decision, the United States has become exactly as Ukraine stood before the people revolted.

A friend of mine from Ukraine came to the states before the last revolution. When they would see a police officer, they would tense up and try to avoid them at all costs. At home, the police were the criminals. They would shake you down, abuse you, and there was simply no rule of law. The Supreme Court, as of yesterday, has committed suicide.

In February 1761, James Otis, Jr. (1725–1783) argued brilliantly against the Writs of Assistance that was authorized in 1660 but became an instrument of tyranny in 1758 in the American colonies as a means to raise taxes. For nearly five hours, Otis made a brilliant oration in court against the Writs, but he lost the case, for what judge would ever rule against his master? John Adams later wrote that “the child independence was then and there born, [for] every man of an immense crowded audience appeared to me to go away as I did, ready to take arms against writs of assistance.” This spirit of resistance appears to rise roughly every 51.6 years, albeit at different intensity.

This very power to arbitrarily search anyone sparked the American Revolution. No taxation without representation followed, but the inspiration was the right to be free and the Supreme Court just took away. The police no longer have restraint. This is the final stage of how empires, nations, and city-states collapse when there is no rule of law. Once the state elevates itself above the people, the end is not far behind. The dissenting words of Justice Sonia Sotomayor reflect the dire state to which the United States has degenerated.

Scalia would have joined Justice Sotomayor on this one, and if he were still alive, he would have tipped the scale and protected our liberty. With Scalia gone, who was a strict constructionist, there is little hope left in the Supreme Court. Justice Sonia Sotomayor wrote, “Even if you are innocent, you will now join the 65 million Americans with an arrest record and experience the ‘civil death’ of discrimination by employers, landlords, and whoever else conducts a background check.”  She concluded, and I must agree:

By legitimizing the conduct that produces this double consciousness, this case tells everyone, white and black, guilty and innocent, that an officer can verify your legal status at any time. It says that your body is subject to invasion while courts excuse the violation of your rights. It implies that you are not a citizen of a democracy but the subject of a carceral state, just waiting to be cataloged.

We must not pretend that the countless people who are routinely targeted by police are “isolated.” They are the canaries in the coal mine whose deaths, civil and literal, warn us that no one can breathe in this atmosphere. They are the ones who recognize that unlawful police stops corrode all our civil liberties and threaten all our lives. Until their voices matter too, our justice system will continue to be anything but.

Another case of fraudulent voting to save the EU has occurred in the Austrian election. The Austrian Constitutional Court has revealed outrageous “errors” to the point that votes were simply regarded as non-binding recommendations. The investigations continue, but this reflects the desperate attempt to save Brussels at the expense of all of Europe. Allowing the people to vote was portrayed as dangerous so the election had to be rigged. This casts a lot of questions over the reality of the BREXIT vote to take place on June 23. Is there any hope for a real election at all?

Unfortunately, those in Brussels, like the Troika, cannot be voted out of office since they have defeated any possible democratic vote. They never stand for election. The very people who dictate the fate of Europe, and are responsible for undermining all the pensions with negative interest rates, never stand for election but still tell the people it is a democratic process. Why any Brit would surrender their independence to become economic slaves to Brussels just shatters the mind. This is a dangerous situation, for the only means to reform or disagree with the policies in place will be civil unrest if not war.

Meanwhile, in France, President Francois Hollande has proposed a ban on all demonstrations, according to his presidential spokesman. The excuse is, of course, that the country is plagued by terrorism and with Hollande less than 15% in the polls, the conditions are not in place to protect “personal or public property.” “At a time when France is hosting the Euro 2016 [football tournament], when it is faced with terrorism, demonstrations can no longer be authorized if property, people and public property cannot be safeguarded,” Hollande told a Cabinet meeting, according to his spokesman Stephane Le Foll, AFP reported.  Very convenient.

In Italy, the anti-establishment candidate is taking the lead in the Rome Mayoral Election. The disagreement with the management of the “establishment” on a worldwide basis is rising precisely in line with our Cycle of War. This is part of the cycle, and it is why we sadly will see Western civilization crumble when the financial capital of the world moves to China after 2032. Even in Japan, you have Finance Minister Taro Aso asking just how long the elderly intend to live, effectively saying die already to reduce the government payouts.

The establishment is faking polls everywhere to retain the status quo and the press is in bed with them. Even the establishment Republicans are not raising money for Trump and want him to lose. Hillary is one of them. They do not want any outsiders. In London, Cameron is in bed with Brussels despite the fact he has lost every single negotiation to date with them. Is he an idiot or just corrupt? Brussels simply cannot allow BREXIT to succeed for it will signal the end of the EU, which they are desperately fighting on every front.

This week will be extraordinarily important for the failure of BREXIT to win will most likely lead to a sharp rise in civil unrest throughout Europe. The machinations behind the forced federalization of Europe by the elitists from assassinations and political coups, right down to massive immigration to breed-out the European race, cannot be sustained. The whole refugee situation is a crisis since the majority of these people are not even from Syria and among their ranks are terrorists intent upon destroying Europe.

Arrogant politicians are in a state of denial. Some politicians think Trump cannot win the general election and are still trying to deny what this election is all about. True, they concede, Trump received more votes than any other Republican in history. He beat every candidate, but that is still not good enough. He won the primary election but that is different from a general election. These politicians refuse to accept the idea that the people are just upset with career politicians in both parties.