Why, now, should Americans support our troops?

Readers will find the author of this opinion article either patriotic or unpatriotic.

http://www.zerohedge.com/news/2016-10-31/what-have-you-done-me-lately

Votes for Hillary: Two Party System Implodes as Top Republicans Offer Formal Dem. Support

http://www.thedailybell.com/news-analysis/votes-for-hillary-two-party-system-implodes-as-top-republicans-offer-formal-dem-support/

Pentagon report predicted West’s support for Islamist rebels would create ISIS

https://medium.com/insurge-intelligence/secret-pentagon-report-reveals-west-saw-isis-as-strategic-asset-b99ad7a29092

A declassified secret US government document obtained by the conservative public interest law firm, Judicial Watch, shows that Western governments deliberately allied with al-Qaeda and other Islamist extremist groups to topple Syrian dictator Bashir al-Assad.

The document reveals that in coordination with the Gulf states and Turkey, the West intentionally sponsored violent Islamist groups to destabilize Assad, and that these “supporting powers” desired the emergence of a “Salafist Principality” in Syria to “isolate the Syrian regime.” 

According to the newly declassified US document, the Pentagon foresaw the likely rise of the ‘Islamic State’ as a direct consequence of this strategy, and warned that it could destabilize Iraq.

Pentagon report predicted West’s support for Islamist rebels would create ISIS

https://medium.com/insurge-intelligence/secret-pentagon-report-reveals-west-saw-isis-as-strategic-asset-b99ad7a29092

Biggest Banks Face Moody’s Cuts as U.S. Support Ebbs

The media and Obama are telling us the economy is recovering, jobs are being created, stock markets are at all-time highs, real estate is recovering, and the banking system is recapitalized.

Not so fast--even Obama-apologist Bloomberg News is revealing things are not so rosy with the banking system.  The economic cheerleaders will be proven wrong--again.

http://www.bloomberg.com/news/print/2013-08-22/moody-s-mulls-downgrade-of-biggest-banks-as-u-s-support-wanes.html

The Federal Deposit Insurance Corp.’s favored approach for winding down banks in a crisis, known as single-point-of-entry, may lead to higher recoveries for bondholders by keeping operating units open, Fanger said. Firms may be required to hold a minimum amount of debt, which also could help recoveries because losses would be spread among more investors, he said.

There would be “more bondholders to share the burden,” Fanger said.

"Losses spread among more investors" is code-speak for depositors will also take a haircut.

How Low Can Gold Go on a Correction?

If you're a "Buy the dip" kind of person, have some dry power available in case gold drops further.

http://resourceinvestor.com/News/2011/8/Pages/How-Low-Can-Gold-Go-on-a-Correction.aspx

As the chart above shows the price of gold has breached the sell line at $1,830 so we can expect to see a correction with downside price targets for support as follows:

1. $1,750 for support from the dotted pink line.
2. $1,650 for support from the warning line.
3. $1,500 for support from the lead-in trend line.

Gold chart

http://www.the-privateer.com/chart/gold-pf.html

This point and figure chart shows support at $950/oz., with the next level of support at $850/oz, should the price of gold correct below $950. Expect retracement higher if we get a test of these support levels.

However, should we consolidate for a few weeks at current levels, expect another move higher, with little resistance, as we are in uncharted all-time highs, at least in terms of a a weakened dollar.

In fact, gold is inversely correlated to the US Dollar. As long as market complacency continues (as measured by a low Volatility Index), equities will continue to rise as investors are willing to take on more risk. This would be bearish for US Treasury bonds--and the US Dollar, which would be bullish for gold. However, if the VIX rises, money will flow back to the dollar as a safety haven, and that will precipitate gold's decline.

That correction in gold may be a good entry point for gold bugs, or for accumulation of more gold mining shares.

Disclosure: I am long gold mining shares.

Gold pauses

As suspected, Gold corrected yesterday, as the mining shares did not move up friday, despite spot prices rising to resistance at $927. Corrections are healthy, so we'll see if gold prices hold their support levels. With further consolidation, the technicals favor another move up, with resistance at the $975 level.

More importantly, the fundamentals are still in price for a bullish case for gold. We'll see if gold trades in this range before testing last year's high.