Copper has just met the lower resistance line of its descending triangle pattern and should it break through that resistance the price for copper could fall like a stone. That, in turn, would have a MAJOR "watch out below" impact on the future level of the S&P 500. Let me explain.
Read More »We’re on the Precipice of a 50% Drop in the U. S. Stock Market! Here’s Why
Warren Buffett's favorite indicator - the ratio of the value of U.S. stocks to GDP - is seen by him as a reliable gauge of where the market stands and these days it suggests that all the main indexes are pointing to an imminent 50% crash.
Read More »How Does Current S&P 500 Bull Market Duration & Strength Compare With Other Bull Runs? (+2K Views)
The tables below provide an update of where the current S&P 500 bull market stands in comparison to prior bull markets in terms of duration and magnitude
Read More »Get Ready to “Put the Pedal to the Metal” (Gold & Silver)! Here’s Why (+2K Views)
Over the next couple of months everything should generally rise together but once the dollar puts in an intermediate bottom sometime in March or April, commodities and gold will move down into an intermediate correction as the stock market completes its final blow off top. After the stock market parabola collapses later this summer it will be time to put the pedal to the metal in the commodity markets, and especially the precious metal markets as the Great Inflation begins in earnest.
Read More »S&P 500 & Dow 30 Index Performances: Illusion vs.Reality
The Dow Jones Industrial Average is a fabricated number that has little relation to the actual average performance of the stock market as a whole. For sure, it is not industrial in nature, and by no means is it an average. It's like creating an all-star team of the very best-performing companies and broadcasting to the world that this is the average of all companies out there.
Read More »Bonds & Gold Will Eventually Rally OR Stocks Will Crash – Here’s Why (+3K Views)
While the stock market is the only game in town - for now - stocks will not continue to out perform all other asset classes indefinitely. Eventually either bonds and gold will rally or stocks will crash very hard. It is one, the other, or even more likely a mixture of both.
Read More »Bernanke Has Created the Mother of ALL Stock Market Bubbles – Here’s Why (+2K Views)
We have NEVER been this overextended above this line at any point in the last 20 years. Indeed, if you compare where the S&P 500 is relative to this line, we're even MORE overbought that we were going into the 2007 peak at the top of the housing bubble.
Read More »Another Warning of Possible Major Decline in S&P 500
Over the past 6 years, when the yield on high yield bonds (junk bonds) broke above resistance of bullish falling wedges, the S&P 500 ended up declining between 17% & 50%. Will it be different this time?
Read More »History Suggests Dow Has Only 4% More To Go Before Correcting
The Dow is just a "pinch away" from a series of resistance lines, ranging from 13 years to 31 years, that have marked important emotional highs & lows in the past suggesting that once the Dow reaches 16,000 or so it will correct.
Read More »Can S&P 500 Justify Current Level With Earnings Growth So Weak?
The S&P 500 is trading at near record high levels on the back of liquidity glut in the financial system. I mention the liquidity factor because all other fundamental factors do not support current levels and valuations.
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