Four to Five Year Market High

This whole extended part of the rally since early July is a much more dangerous rally than the action we saw in 2007 before the crash started.  Two things make it more dangerous, first it is the same investor mentality and probably group (led by the Cramer clan) infesting the markets and secondly there will be no parachutes when this thing cracks.  We are not looking for just a sell-off, this will be a situation for which you want to be protected. 

What is changing is that the consumer led part of the economy, was 70 percent, has stopped growing and will become a smaller and smaller part of the equation.  The consumer ironically have learned their lesson better than Wall Street and the Pension Fund managers in Boston.  The people managing your money want to think we are on to a new leg of an old pattern, they will be growing tomatoes and living in tents in a few years. 

In summary, big changes are evolving, when the next cycle gets going in 2015 to 2017 I believe we will have morphed into an export led economy that will live off the emerging market countries.

8:35 AM CDT