The market is crying out to you this month, pay attention to the second most important month of the 17 year economic/market cycle. The most important month was March 2000, the real start of the market downturn.
First, this morning we are seeing the front page of the NYT looking like the end of the world is here, secondly, last weeks’ action moves the projected 17 year low on the S&P 500 up from the 643 area to the 685 area, just 15 points under yesterdays low, and thirdly, the pessimism about the Obama program by the so-called investor class is so great that there’s no way to go but up for the next 8 years, through the end of the 17 year cycle.
So this is an important time, the pessimism of the investor class out-weighed the hope of the populace since Election Day , but guess what, the little guy has been buying since October and the investor class is out of the market. Grassroots politics is moving forward.
Yesterday we got one of our two signals, gold closed under 930. The second signal, XLF/GLD, the Financial ETF/Gold relationship has not turned yet but it is posturing and will confirm soon.
The EMA ETF Fund NAV was 794 at yesterdays’ close.
6:40 AM CST