Remember how I wrote about the 7th year cycle top. Well it occurred.
Hope alot of you took my advice and hedged or got out of the market. I know better though. Let me know if you did because you are better off now than alot of other people. I hope you long the metals too.
Now lets look at how long of a correction the market will have.Seasonally the bottom for a 7th-year decline extending into a decade’s 8th year is as follows, the others established final lows on April 2, 1888, March 25, 1898, March 31, 1938, February 14, 1948, March 5, 1968 and March 1, 1978, respectively.
But now an ensuing leg up may have trouble taking off in earnest through much, if not all of the first quarter.
Since the Fed did kick start the interest rate declilne the market respects that and will probably make the Jan 22 low a turning point. But I feel that there is more backing and filling to be done. The bottoms may even be tested but this is an election year and it's not good to have the market tanking in an electiion year.
I predict that the general market will have a turning point in March, almost like 1978.
Inflatiion was strong, the middle east was in turmoil, oil was a precious commodity, it was an election year. There are too many similarities to the history of 1978 that will cause 2008 to be about the same.
Even a Democratic President was elected in 2008. So be careful. Buy Silver and gold stocks.
I like AUY again because it is starting to get some press. Therefore its already in the 2nd major up wave headed for $30 in the next 2 years. Also buy LMC, AXU, CDE, SSRI, GG.