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...But that’s not what my research indicates. Not even close.
After one final surge up to 16,000, I see the Dow Jones Average winding down, week after week… falling through the 12,000 mark… below 10,000, then 9,000, 8,000… to 6,440
And there’s nothing you or I, or any politician or government, or any team of monetary experts can do to stop the Dow Jones Index from dropping.
...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.
Friday, February 14, 2014
ANOTHER PIECE OF THE PUZZLE FALLS INTO PLACE
Today another piece fell into place in my Great Inflation scenario that I'm expecting for 2014.
Before I begin let me recap. My overarching driver for the Great Inflation scenario is that the dollar would have some kind of crisis, or semi-crisis late this year as it drops down into its major three year cycle low. All other stock and commodity movements will be driven by this impending currency crisis.
For stocks, I'm expecting a final bubble phase parabolic spike over the next 4-5 months, followed by a devastating crash as the parabola collapses in June or July....
For commodities, I'm expecting a stealth rally for another month to a month and a half, followed by a super spike inflationary phase in the latter half of the year as the dollar collapse reaches maximum intensity....
QE 5 & 6 will be the final nail in the coffin for the dollar, and will trigger a full break of the megaphone top. I expect a move below the 2011 and 2008 bottoms before the dollar completes its final three year cycle low.
Commodity markets have already begun the stealth rally that I was looking for during the first half of this year. They successfully tested the 2012 three year cycle low and have now broken through the multiyear downtrend line. The Great Inflation has begun.
During this stealth rally I'm expecting gold to test the initial April breakdown at 1520 over the next 1-2 months.
That should push sentiment levels to bullish extremes from their current depressed levels, triggering an intermediate degree profit taking event into May or June as the stock market finishes its final parabolic blow off top.