June 7, 2026 Weekly Report

 6/7/2026

 

Let's start with silver as I want ot make a point

 This is  weekly chart for the last  1.5 years.  Silver rose 4x from $3 in early 2025. I reached parabolic proportions at $120. In a matter of weeks it lost half its value to trade at $60. After a rise to $95, it is back to $67. My guess is $50 for support, which looking back to 2025 does not seem unreasonable. A 38% of 120 is about $48. Those sort of numbers do not seem to alarm anyone, but it one bought on the way up at $70 or more, one is way under water. My point is what if this happens to the stock market?

Micron Tech MU

 38%, a fionacci number, of $1,000 is about $400, the red arrow. That looks reasonable on the chart, too bad for the late comers.,

INDU

 38% of 50,000 is about 19,000 which. surprise, is about the COVID panic low. Considering 209 started from 7,500, 19,000 dos not seem unreasonable. But understand this will wipe out over half the savings of baby boomers and those following generations. UNreasonable, look at MACD bottom panel now, maxed out.  Look at 2009, ,wiped out. 

At such times Richard Russell used to say, there's a hard rain comin'

I return to my 1973 scenario

an unpopular President, Nixon then, Trump now

an unpopular war, Viet Nam then, Iran now

Inflation

High gasoline and meat prices

 A stock market at all time highs, then 1,050 now 50,000

Sound familiar?

Two Year Yield

 Since March ,that is a 22% rise form 3.4 to 4.1%. The market sets this rate not the FED. Note Friday's 2.42% spike on the sell off in stocks, Bonds, metals, oil. The trend in rates is up, period. the world is awash in debt. Lenders want more income as assurance against default.

Social Mood

 Senators want to tie SS to stocks and bonds  That was last summer, July 2025, do the ystill feel that way?

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Charles did not do this at INDU 7,500, this is what happens at insane new market highs

 

 Not to be outdone by Kaine and Cassidy, Trump gets on board with the stock market

Trump accounts the government offers free money to enter the stock market

Trump Accounts were created under a 2025 federal tax law as a new type of tax‑advantaged savings account, as USA TODAY's Daniel de Visé previously reported. While the pilot program provides a government contribution for certain newborns, all eligible families can participate on their own if their children meet the requirements. 

These would have been great ideas at the dot.com low of 2002, th sub prime low of   2009, but social mood would never have allowed them then, the mood towards investing was too negative, only amid a positive mania do such things happen.

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Friday was a 90% down daywith 90% of stocks trading lower on the day. Now look for a short term recovery as well as the Space X IPO later Thursday Friday, let's watch from the sidelines.