The talking heads have declared the correction over as new record highs are being broken. The problem with that thinking is that there are expanded patterns that constantly fool us thinking that the bull market is still alive. These types of moves can turn very violent in a short period of time, so I have deep respect for expanded patterns. This would just be the opening pattern to what will be a Cycle degree flat bear market. Up to the first “A” wave in Primary degree a flat and a zigzag are different, but then the counter rally bull market “B” wave and the following Primary degree “C” wave can be exactly the same.
We sure have a rising wedge in progress and they are about as bearish of a signal as they come. The entire bull market in stocks has worked with printing money on a unprecedented scale, and when the markets crash then this is asset destruction on a grand scale. It’s like throwing money in a fire and watching it burn, far less money will be around in the future as 100 trillion in world asset values could disappear in a puff of electronic smoke!
This is what happened in 1929 and the only difference now is that the 1929 crash was a Supercycle degree wave 2 crash. In 2018-2021 we will be one degree lower. It will be worse than the 2008 recession, but not quite as bad as the 1930’s depression.
Gold will crush all the old myths about protecting you when things get crazy but this a false believe as gold will not protect you in deflationary times. Buying this market on any dip is also a crazy idea if you don’t know that a big crash is coming.
Just like the markets crashed down into 2008-2009 we are faced with the same situation 10-11 years after the 2007 peak. If we take 1929 and add the Fibonacci number 89 in years, we get 2018. 89 is only one year off from 3-30 year cycles.
This 30 year cycles works best in the gold market as for he stock market I have to calculated it a bit different, mostley from different times.