At this point I think even the most diehard perma bear has to admit that my cycles technique has navigated the markets almost perfectly. When everyone was calling for the end of the commodity bull market this summer I correctly predicted what we were seeing was just a move down into a three year cycle low that would soon bottom and generate a tremendous surge higher.
In May and June I warned traders to
watch the oil cycle as it would govern the rest of the commodity
markets, and the three year cycle would bottom along with the
intermediate oil cycle.
I also warned at the time that the
dollar's three year cycle would likely top at about the same time as the
CRB bottomed. This also has come to pass and the dollar is now set up
to drift generally lower into its next three year cycle low in 2014. As I
have outlined previously, this should drive the extreme inflationary
scenario as commodities build into a final parabolic spike, as
Bernanke's monetary policy slowly destroys the purchasing power of our
When everyone was calling for a bear
market in mining stocks, I pointed out the 1-2-3 reversal that was
setting the stage for a major bottom and once in a lifetime buying
While many others were predicting $1400-$1200 gold I correctly spotted a B-Wave bottom in progress.
Now my cycles system is signaling that all markets are again waiting for the intermediate oil cycle to bottom.
Once it does we should see another
strong leg up in the CRB, another leg higher in stocks (possibly to test
the $1500 level), and probably a final surge in gold to test the
all-time highs at $1900 (expect a brief move down into a daily cycle low
later this month before the final surge into an intermediate top).
SMT premium newsletter. $10 one week trial.