Below is a chart of the ETF that tracks the value of bitcoin, GBTC, and the Dow Jones Industrial average for one year ending 4/29/18. One can easily see the correlation. They are the same chart. Maybe GBTC leads the Dow in direction. If so, GBTC is going lower while the last Federal Reserve instigated rally only turned ugly today with a near 400-point selloff. Let’s review.

As I have been writing, America has been stripped of everything including a ‘market’ of stocks and the ability of investors to realize price discovery. The Fed is in charge of that. Forget Elliot Wave or fundamentals or anything else. That stuff only applies to real market behavior. Technical patterns only matter because the Fed manipulates them to keep us playing along.

The selloff today will no doubt be met by a strong ‘buying’ surge early Wednesday morning. Clearly the Fed will not tolerate another breach of their self imposed Dikembe Mutombo Line (DML - see past articles for explanation) of 24k on the Dow. So, downside from here is limited.

Readers may wonder, how can I be so precise in predictions. I wrote a few months ago that the DML had been established. I followed with the assertion that the Fed’s next target would be Dow 25k as this would give them a ‘higher high’. This way the Fed could say, “Look, we have an uptrend forming.” So forget everything about ‘markets’. They don’t exist anymore in our current police state of complete control. Readers want to know where do we go from here.

As of this writing, the Dow is only 361 points above the DML. So, downside risk from here is limited. Next, the Fed has to push the Dow further than the now previous high of 25k. Looking at the charts, it looks like Mr. Powell’s nefarious band of NWO slavemasters would target Dow 25,400 or so. A thousand point rally is nothing for these people.

Yes, I know that the yield curve is currently less than 40 bps from inversion. I know that stock buybacks and Fed intervention account for all stock valuation gains. Yes, I know that the SEC has launched an investigation into rather curious activity in the options markets where it appears that someone (cough-Fed) has been manipulating the VIX by buying the most out-of-money contracts in large volumes. So what?

Welcome to the new america. Nothing is real. Nothing is true. No one wants to know the truth. It’s all one big con game. Investors are the mark. They are easy. They don’t know anything. Everyone I talk to repeats the same refrain - ‘stock prices always seem to come back up’. Yes, they do don’t they. I wonder why?

That brings me to bitcoin. Many people believe bitcoin is a fraud. It has no value. Yet, these same people believe that the Dow is true and represents value. Look at the one-year chart below of the DJIA in gold and GBTC in black. They are essentially the same chart. How is it that one is pure speculation and gambling and the other is not. Charts don’t lie. Governments and banksters do.

Notice one thing. Remember the slight Dow selloff in mid-April ’18. Remember the reason? Supposedly the 10-year US Treasury yield was spiking toward 3%. Then in May, the yield went over 3% and stocks rallied to the 25k mark on the Dow. Explanations are all BS. Explanations are given to keep investors, or suckers, playing along. As if, everything has to have a reason.

Again, the only reason the Dow even trades is the Federal Reserve Bank uses it as a puppeteer uses strings. So again, look at the chart below and decide which line is a fraud. Hint, both of them. Note that bitcoin has been falling ever since the CBOE began trading bitcoin futures in December 2017. I knew that would be the end of bitcoin. It will never be allowed to compete with the Fed’s fraud paper money.

DJIA - 1-year ending 5/29/18
Chart courtesy StockCharts.com

Barry M. Ferguson, RFC
President, BMF Investments, Inc.
Primary Tel: 704.563.2960
Other Tel: 866.264.4980
Industry: Investment Advisory
barry@bmfinvest.com
www.bmfinvest.com
www.bmfinvest.blogspot.com

Barry M. Ferguson, RFC is President and founder of BMF Investments, Inc. - a fee-based Investment Advisor in Charlotte, NC. He manages several different portfolios that are designed to be market driven and actively managed. Barry shares his unique perspective through his irreverent and very popular newsletter, Barry’s Bulls, authored the book, Navigating the Mind Fields of Investing Money, lectures on investing, and contributes investment articles to various professional publications. He is a member of the International Association of Registered Financial Consultants, the International Speakers Network, and was presented with the prestigious Cato Award for Distinguished Journalism in the Field of Financial Services in 2009.

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Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented.

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