GDX Bear Market 2011-2018 Review

 

The 2011 GDX top was a 30 year mania peak  that is far from over in its correction. It could take well into the fall before we would only be a third of the way through.

The entire zigzag in Primary degree may not finish until 2021 or so as this would be close to a Cycle degree 4th wave bottom. That would work out to a 10 year bear market which is a bit shorter than some that took 13 years to complete. This inflated world is going to crash and gold will follow it down as well, reflecting deflation perfectly. Gold will not protect you from inflation unless gold hits a rock bottom below $500. Extreme prices for everything servers no one, as it stiffles all activity over time. Inflation is no longer the threat as deflation will be the core reason why gold and gold stocks are still going to crash.

If your waiting for the US dollar to collapse then you could still be waiting when your 6 feet under. The USD could be on a Supercycle degree bull market that will last longer than our present lifetime or 2041 and beyond. The cause is the great worldwide fertility crash that will intensive after every stock market crash. This happened in 2010 as reports of a fertility crash surfaced.

The Gold/GDX ratio is sitting at 57.3:1 this morning, which is better, but still a far cry from being cheap at 84:1. I also keep an in-house “gold ratio pool” of about 15 items that only my clients get to see and ask questions on. The same thing goes for my “Wave Pool of 50 asset classes” which is all in-house maintained as well. Also a Death Cross Pool would keep track of any Death or Gold Crosses that might be forming. My buddy and I meet about once a month, and I assure you we are in full planning stages, to squeeze the most efficiency out of every major move, for the entire Cycle degree move. We can only squeeze in a few hours but it is the best way to help each other to be very clear in what we have to do, later this year and in late spring of 2019. My wave positions will be continuosly tested with real money from 2018 forward, and the next three years.

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