The Fifth Rail of Your Own Protest Movement and Freedom Is Solar Power

Thursday's post, How to Become Your Own Protest Movement, received very favorable responses and readership, as four ways to escape the tyranny of government were presented as Planting a Garden, Starting Your Own Business, Homeschooling, and Investing in Gold, Silver and Cash.

The cursory overview supplied plenty to expand upon, but with those four key components, overlooked was a key component to freedom, Becoming Your Own Energy Producer.

A brief overview of yesterday's fake, controlled, contrived, Fed-and-algo-induced markets will come at the end of this post, but let's take a look at the obvious energy source for independent thinkers, solar.

Solar power has been with us a long time. In 1979, President Jimmy Carter had 32 solar panels installed on the roof of the White House. They were used to supply hot water for the first family and White House cafeteria.

In 1986, President Reagan, not a fan of solar power, had them removed. But, in 2002, the Bush administration installed solar water heaters on the Cabana’s roof to heat the White House pool and more solar photovoltaic panels were also installed on the White House roof in 2014 and they remain in use today.

Over forty years have passed and solar technology has exceeded all expectations, to a point at which it is now on a par - or in some cases cheaper - than energy produced by traditional coal or natural gas power plants.

Single-family use of solar panels has been on the rise for years, and prices for photovoltaic panels are now approaching $1 per watt, which is pretty cheap, or for a 100-watt panel, about $100. A single 100-watt panel can produce nearly a kilowatt (1000 watts) of clean power per day, and many panels now work well even on cloudy days.

Solar panels will even produce a small amount of electricity on clear nights with a full or nearly full moon. There are even solar panels designed to be efficient at generating electricity from moonlight.

There are countless studies on solar and it's efficiency, all of them showing vast improvement from the early pioneering days of the 1970s.

Connecting to the power grid is also optional, though many advanced users are now powering their homes almost completely with solar and the amazing power of lithium-ion or lithium-polymer battery banks which can store the power produced by the panels and convert it from DC to AC.

Of course, as more people convert to at least partial solar power, governments and power companies have fought the trend with various tax bills, permitting, and penalties for people who generate their own power and, in 2016, congress extended the tax credit for solar installations, but the credit is reduced to 26% (from 30%) in 2020, and to 22% in 2021. After that, the credit will be 10%.

In addition to providing cheap, renewable power, solar panels and an operating inverter/battery system can increase the value of your home.

This topic cannot be sufficiently explained in one article. There are many varied uses and types of solar power available to consumers. Those will be covered in subsequent posts, but adding energy independence to your cache of freedom materials is a sure-fire way to thwart the unequal system of governance and economy the US and other countries have promoted.

Instead of everybody relying on one big power producer, solar offers a distributed system whereby individuals, families and businesses can produce their own power at very reasonable costs. The fluctuations of a voltage regulator attached to your own solar panels serves as a near-constant reminder that you are freeing yourself from the corrupt, slavish system.

As far as stocks are concerned, they were nearly flat on Thursday, but Friday being a quad-witching day, there's likely to be a pretty good lift via the algorithms and some Fed pumping.

Oil, which continues to stubbornly increase in price despite constant nibbling away of demand is currently testing $40 for WTI crude, a ridiculous number that should have everybody thinking electric cars powered by home solar panels. The price of oil will continue to rise as countries and industries dependent on pumping it from the ground refuse to face reality and cut production, limiting supply. The oil market is probably more crooked than stock markets and has little to do with actual supply (there's a huge glut) and demand (it continues to decline).

Oil should be $20 a barrel or less in the US, and gas at the pump should be approaching $1.25 a gallon. Instead, both prices continue to rise as oil companies and state and federal tax revenues are choking to death with lower prices. Expect major disturbances and disruptions in supply and price over the coming months and years as the world transitions away from oil.

Gold and silver continue rangebound as the manipulators suppress the price of precious metals over fears that they will replace their unbacked currencies.

Change must happen. Those who oppose change will be effected with severe consequences.

At the Close, Thursday, June 18, 2020:
Dow: 26,080.10, -39.50 (-0.15%)
NASDAQ: 9,943.05, +32.52 (+0.33%)
S&P 500: 3,115.34, +1.85 (+0.06%)
NYSE: 12,072.59, -13.91 (-0.12%)

Stocks Up On First Trading Day Of Year, Signifying Nothing

Having - i some small ways - dispelled the concept that reaching for fantastic numbers such as Dow 20,000 is somehow productive, traders today took no heed of... well, anything, and pushed the DJIA close to the historic, albeit meaningless, mark.

That was early in the day. Shortly after the noon hour, the Dow had given up nearly all of the gains (all 160+ points) and was close to UNCH for the day. At the same time, the big run-up in WTI crude - to its highest level in 18 months (July 2015) - quickly was eviscerated, sending crude back below the break-even point for the day and into the red, where it closed on the NYMEX (53.49, -1.17).

However, the trading was not over on the stock exchanges and market participants seemed determined to open 2017 on a positive note, which they did, the major averages closing about 25% off their high points of the day.

Gains were well distributed, with nine of ten sectors positive, led by basic materials and energy. The only loser was utilities, though the loss was mild (-0.07%).

None of this one-day-one-off momentum-fest should be cause for alarm nor excitement. It's a new year, loaded with new ideas and fresh money and that money needs to go to work. While there are still impediments and potholes on the road to a brighter economic future and higher stock prices, none of that appeared to be of any consequence today.

Tomorrow may be another story with the very good possibility that the Dow will pierce the golden 20,000 mark and go well beyond. On the other hand, the evidence from the final two weeks of 2016 was robust in telling that the Trump rally from election day forward had run out of steam, so sideways could be the order of the day.

Money Daily was correct in predicting that Dow 20,000 would not be achieved in 2016. The second hypothesis was that it wouldn't reach that number until June of this year. Our third and most bombastic call was to say that Dow 20,000 may not be hit until 2023. Note the word MAY. We did not say the Dow would NOT reach 20,000 by that time, only that it MAY NOT. Big difference, but the call is based on a nascent understanding that everything in finance-land is not as rosy as the fake news media might have all of us believe.

The concept is very deep and rooted in a theory that the bulk of stock gains since the GFC of 2008 were achieved only though the means of depreciating and nearly decapitating currencies around the world. If money is cheaper today than it was yesterday, assets will accordingly be priced appropriately higher. Of course, should this free-money regime persist (we think it won't) then Dow 20,000 is not only achievable in the short run, Dow 30,000 would be in the kluge lights in short order, as would Apple at 250, and sirloin steaks at $24 a pound. In other words, inflation, then hyperinflation - such as is the case in Venezuela today - would make pricing irrelevant. Survival on $100,000 a year would be challenging and nobody is looking forward to that kind of nightmare scenario.

So, we see the gains of the last eight years as chimeras, and fading. And, if they fade, they will continue to fade until they are almost all gone. Not that a major, dramatic, collapse in prices would be a panacea for a better world, but only one which could be called closer to rational.

That's the view.

At the Close: 1.3.17:
Dow: 19,881.76, +119.16 (0.60%)
NASDAQ: 5,429.08, +45.97 (0.85%)
S&P 500: 2,257.83, +19.00 (0.85%)
NYSE Composite: 11,154.35, +97.46 (0.88%)

Gold, Silver Rise as Banks, Energy Stocks in Market Crosshairs

Being that the US equity markets are almost 100% likely to end the month with losses, the opening of the final week of January trading may have been significant if only for the direction of a select number of trading vehicles.

Obviously, energy stocks were once again in focus after last week's faux rally on actual inventory builds, though the pundits of oil slickery are blaming today's demise on the record weekend blizzard that decimated the Northeast.

As lame as it may sound, having the I-95 corridor out of commission for the better part of three to four days is certain to result in growth of the oil and distillate glut that has been plaguing the markets for the past 18 months. The logic is simple: if people aren't driving, nobody's buying gas, and that is exactly what the market doesn't want to hear, especially those of the camp who still believe in the peak oil myth and would like nothing better than to cripple the middle class with another round of crushing gas prices at the pump.

Sadly for them, no such thing is about to occur, and, after being goosed nearly 20% last week, WTI crude took a turn to the downside again, off almost 6% on the day, closing just a nod above $30 per barrel. With the canard of higher oil prices (last week was a serious short squeeze) out of the way, oil majors Exxon Mobil (XOM) and Chevron (CVX) - both Dow components - both declined by more than three percent.

Also taken down a few notches were banks, especially Bank of America (BAC), which closed below 13 at 12.96, a one-day four percent drop, now down a solid 30% from its recent 52-week high (18.48). Investors and specs are concerned not only with BAC's exposure to the oil patch and fracking concerns, which have been going belly-up since last Autumn, but with the overall health of the banking sector. Reminded that the nation's largest banks had to be bailed out during the sub-prime crisis just eight years ago, stock players don't need much to arouse their worst suspicions, that the balance sheets of the big money center banks are still not exactly transparent.

Citigroup (C) also was on the chopping block, losing 3.35%, extending its decline since May to a third of its value, from 60.95 to today's close at 39.55.

Meanwhile, gold and silver put on tidy gains, with gold edging up nearly $10, from $1098/oz. at Friday's close to a finish in US markets at $1107.90 today. Silver gained, from an even $14 to $14.23 on the day.

Overall, stocks were exposed again, with US indices staying in the red all day long, the selling accelerating during the afternoon and into the close. It was an inauspicious start to the week in a month that has been nothing short of embarrassing for Wall Street's perms-bulls.

Today's Closing Prices:
S&P 500: 1,877.08, -29.82 (1.56%)
Dow: 15,885.22, -208.29 (1.29%)
NASDAQ: 4,518.49, -72.69 (1.58%)

Crude Oil 30.33 -5.78% Gold 1,105.60 +0.85% EUR/USD 1.0849 +0.47% 10-Yr Bond 2.0220 -1.27% Corn 369.25 -0.27% Copper 1.99 -0.47% Silver 14.23 +1.23% Natural Gas 2.16 +0.84% Russell 2000 997.37 -2.28% VIX 24.15 +8.10% BATS 1000 19,941.58 -1.78% GBP/USD 1.4246 -0.19% USD/JPY 118.3035 -0.36%

Stocks (and Oil) Can't Catch a Break

It was another ugly day on Wall Street, not because stocks finished higher, but because of how they got there.

Right out of the gate, the major averages were soaring, but all of the early gains were wiped away shortly after 11:00 am. Stocks zig-zagged through the midday, going positive, then negative, and, finally, just after 2:00 pm, decided that upwards would be the most-favored path, so the bid was in.

However, prior to that late-afternoon spike, there were more than a fair share of winners and losers, most of them being of the losing variety. Of the top ten most actives, nine of them were in the red, even with the indices moving decidedly positive. Only Apple (AAPL) was a winner, for reasons of which nobody could rightfully discern.

Of those nine losers, eight of them were energy or materials-related. The oddball in the group was Bank of America (BAC), which continues to shed market cap and is now in the early running for dog stock of the year (but, it's early, though since it's a bank, our money is on them).

Energy and material stocks were actively trending lower because of the all-too-obvious drop in the price of crude oil and just about anything else that falls into the commodity sphere. Oil continued to decline, price-wise, today reaching below $30/barrel for WTI crude as inventories rose and demand fell, giving the slick stuff a double whammy of bad news.

On the NYSE, losers and winners were nearly even, and there the disparity between the new highs (9) and new lows (564) was cause for alarm. On the NASDAQ, a similar story was unfolding, though breadth was slightly better. New highs numbered only 12, with 352 hitting new lows. That's where the real story is taking place. There are far too few stocks leading the market (large caps) and far too many small and mid-caps weighing it down.

These imbalances have much to do with the ongoing debate over wealth inequality. The policies of the Fed not only have benefitted the richest individuals in the society, they've also been particularly advantageous to the larger, better-established listed companies. The big firms have better access to big money for stock buybacks, primarily, while the smaller firms languish in the all-too-real mundane world where profits matter and cost-cutting continues.

Smaller firms have a harder time making their numbers in a slumping economy and are first hit when business begins to slide, or, at least that's how the current crop of traders has been conditioned. Slumping oil prices has morphed into an all-around slap-down of commodities in general, which, in normal times would be good for business, but today the low prices for everything from aluminum to copper to zinc has spread over to consumer goods, most of which are manufactured overseas in sweatshops at minimal cost.

The other side of the equation, that being consumer demand, has been hollowed out by years of fleecing by giant corporations and the Fed's insistence that nobody earn a dime in interest. While Wall Street could afford to speculate and spend because the spigot was wide open, Main Street tightened its belt until consumers are able to only afford the bare necessities after paying more in taxes, fees, credit card interest, student loans and, especially, health care. If there's one culprit upon which most of the blame can be laid for the rottenness of the general economy, it has to be the misappropriately-named Affordable Care Act, which acted as a wealth transfer mechanism from the pockets of ordinary citizens into the health care morass of hospitals, providers, big pharma and insurance companies. It has drained the economy of whatever excess had been created by reduced gas and fuel prices.

Today's closing quotes:
S&P 500: 1,938.68, +15.01 (0.78%)
Dow: 16,516.22, +117.65 (0.72%)
NASDAQ: 4,685.92, +47.93 (1.03%)

Crude Oil 30.57 -2.67% Gold 1,086.00 -0.93% EUR/USD 1.0849 +0.01% 10-Yr Bond 2.1020 -2.59% Corn 358.00 +0.35% Copper 1.96 -0.63% Silver 13.77 -0.69% Natural Gas 2.26 -5.68% Russell 2000 1,044.70 +0.27% VIX 22.47 -7.53% BATS 1000 20,630.49 +0.55% GBP/USD 1.4440 +0.04% USD/JPY 117.7805 +0.04%