“It’s been my opinion now for the last year that the bull market that started in March of 2009 at 666 on the S&P would come to an end either in late 2013, or early 2014. I’m confident that will be the case, but based on the cyclical pattern of the current decline I believe we still have one last leg up before this bull comes to an end. I think the intermediate decline now in progress is going to create the conditions for a final manic melt up phase over the next 2-3 months to complete this huge parabolic structure that the Fed has constructed with 5 years of QE and 0% interest rates.
We’ve come this far and tested the 2000 reaction high, I have to think we’re probably going to go all the way and test the all-time highs on the NASDAQ before this bull market comes to an end.
A similar percentage advance would place the S&P 500 at roughly 2200 points which when completed would represent a massive parabolic structure that when it collapses will tip the globe over into the next recession/depression.
So when do we buy stocks you ask? Should we buy today? The answer is, no I don’t think the intermediate decline is done just yet. We first need to break the intermediate trend line to confirm this as an intermediate degree correction.
At the very least I think the S&P needs to retrace 50% of its recent intermediate rally. That comes in at roughly 1700-1705….”
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