CHOPPING AROUND IN THE FAGBOX

If you would only hearken back to the halcyon days of 2008 when men were men, you’d see the pattern then repeating itself now. We’re in a FAGBOX, chopping around, after confirming a head and shoulders top. I know technical analysis can be tedious, so let me describe this to you in real terms.

Stocks were doing really well for a long time and people made a lot of money. Then they dropped, tried to get back up, and then dropped again. Only this time, the decline was accompanied by some fear, which made it drop even more. Now we’re in a range, vacillating around, unhealthily, obviously waiting for another leg lower.

The bias is to the downside, especially with strong bonds, gold, and weak oil. We can rally hundreds of points from here and still be in a range. In the past, these ranges are often extended for several months and then broken in dramatic fashion. My best guess — much lower by mid- January.