IMF Special Report
I just received my copy of Institutional Investor magazine today in the mail and there is an IMF special report on how a massive cyber-attack on our financial system is coming. What's interesting is the financial sector as shown in the chart below has been sniffing out risk in its sector since August 2017.
My thoughts are how this maybe similar to how the scumbag insiders of Equifax sniffed out their massive breach and sold their stock before the news became public. Maybe the breach of $EFX is just the tip of the ice-berg on how this is all going to go down (the back door if you will). There is a whole lot of very disturbing evidence in this article that this maybe true and coming from North Korea and China. (Maybe the whole nuclear threat from NOKO is a "look over there" move)
"There are many different forms of an attack, but you've got to think about how a banking institution has been positioned on the internet. They have to interface with customers right?" says Jason Truppi former FBI cyber-special agent.
It's also noted in the article that a global financial institution "war game" (operation Resilient Shield) was not about preventing a cyber-attack, but to rehearse what actions should be taken WHEN a cyber attack occurs on critical banking infrastructure. (So in other words they admit they can't do S#%T about it until it's done.)
According to former FBI cyber agents, a consequence of a cyberattack on a country's economy would send a ripple through all industries (i.e. utilities, energy grids, banking, transportation
You may want to withdraw a week or two worth of cash, just in case. (South Korea (a more advanced electronic civilization than the USA) was attacked by NOKO and people couldn't get to their money from banks for 2 weeks )). Oh and be careful of #FakeNews. More on this later....
Financial Index sniffing out "Risk" ?
2008-2017 financial sector chart. We topped in August of 2017.
IMF back into Gold
Institutional large speculators and managed money are buying Gold again and this time at higher levels than their first buys after the Trump MAGA win. During these last few weeks while Gold has traded down, Institutional money flow has picked up according to the Commitment of traders report. This could help Gold trade back above the $1,350 level, IMHO.
A quick side note: ZeroHedge put out a piece today that Chinese Golden Week has been responsible for weak demand every year from 2013 until the holiday is over. It then tends to bottom after the holiday. (I've never heard of this before and I've also never traded the India demand either)
So I say, Buy with the institutions and if you're front running the traders before they come back from holiday and you get better prices, than great! Of course, if the Chinese Golden Week and Gold relationship is a real thing then you can say that's the reason if you want. I'll stick with the IMF.
Here is the article:
FYI- here was my Gold topped call.
Long term "smart money" is flowing into these stocks. The idea is that if there are a number of top money managers all buying the same stocks, they will support them on any retracement and more importantly, this is the list they are most likely to hold and add to if we enter a downturn in the market. These stocks will also tend to be the first bought after a market correction and outperform the indices on the way back up.
The key is to wait for these stocks to come into your personal risk buy zone, then confirm there is still Institutional Money Flow and then join them. Personally, I close out a position if it drops 10% at any point.
BTW, this same approach works on indices, futures, commodities, forex, ETF's, mutual funds, real estate, fine wine, classic cars, art etc... or anything that follows the auction market process.
IMF track record as of 12/5/16
Notice the S&P 500 has returned at its highest point 10% and the stocks held by the "smart money" tend to outperform.
2017 Energy trade continued
Uptick 091917 well on its way. Adjust new target to $53.50
We've been in a holding pattern for additions to our long equity positions in Energy since the initial purchases in May to Crude's recent August 2017 high. We continue to trade with a long bias on Crude Futures with a target in the mid 50's. As of 9/13/17 we are less than 4% away from a strong up move in energy. Stay tuned.