New Highs – Here We Come

Correct again. The S&P has now taken out the June intermediate cycle high and is only 10 points from taking out the all-time highs. You need to use cycles to spot these turns. This is why the technical crowd, EW crowd, etc. continue to get these wrong.

Face it, these guys are never going to spot these turns. You need to understand cycle theory to profit from these major intermediate turning points. You also have to acknowledge and accept that we no longer have free markets and be willing and able to spot when interventions occur.

I suggest that if you are still following someone trying to deny market manipulation you run far and fast in the other direction. They are going to be bad for your portfolio.

new highs - here we come
I keep warning that the AD line is making new highs. There has never been a bear market with the AD line diverging like this. Yet the perma bears continue to ignore this… and lose money because they do.

2009 so damaged investor psyche that many will never be able to trade from the long side until well into the bubble phase. The same thing happened after the `32 crash.

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21 thoughts on “NEW HIGHS – HERE WE COME

  1. Gary Post author

    Without the constant barrage of attacks in the paper market gold is holding up well after the jobs number. A year ago this would have been an excuse for the bullion banks to destroy gold.

    Now that the manipulation has stopped gold is just chugging higher naturally as it should have all along and would have if not for the manipulation that created the bear market.

  2. s29

    Nice call. What do you except when we break the all time highs? Shortsqueeze S&P to 2160 and then a slight pullback to the old all time highs?

    1. Gary Post author

      I can’t predict the day to day swings. But we are only 4 points from the all-time highs and only 8 days into a new intermediate cycle. The markets are going a long long ways once the breakout occurs.

      Like I’ve been promising for over a year now the bubble phase is coming.

      All the while the usual pundits (you know who they are) have been calling for a bear market and done nothing but lose money trying to sell short. In the meanwhile we have been making an obscene amount of money this year, and the year is only half over.

      I warned this was going to happen. We are in the same environment now as we were in 2009. All markets coming out of major mulit-year cycle lows. All the commodity markets really needed was for the manipulation in gold to stop and then everything would go up. It did, and they have.

  3. gent25

    With bulls now giddy and licking their chops they’re saying 0 pullback until 2200 on spx right?

  4. Gary Post author

    The stock portfolio is now up 65% in a year and a half.

    Not bad considering the S&P is basically flat.

    1. jhmoffett

      Nice work! Miners, small and large, have been surging the past several of months. Time to lighten up on leveraged miner positions?

  5. jhmoffett

    Gary — am staying long stocks. Yet miners, small and large, have been surging the past several of months. Time to lighten up on leveraged miner positions?

  6. dhj

    Gary – How long do you expect this move up in everything to last? 2 or 3 years. At what point does the stock market start to diverge from the precious metals market?

    1. Gary Post author

      At least 2-3 years. There is no reason for them to diverge. I’ve been saying for months and months that once the manipulation in the metals stopped everything would go up together as it should and as is the norm.

  7. peterwstsang

    Gary – it seems that the new high may come earlier than you expected though I have not taken any positions. Good call and well done. Keep it up! Very much appreciated for pointing the lost herds to the right direction. God bless.

  8. mediatik

    Looks like oil is not cooperating … I guess that’s were the manipulation is right now .

    1. Gary Post author

      No oil is just dipping into an intermediate cycle low. I was expecting it to come a little later, but no big deal. Once the ICL is finished then oil will head to $60 then $70 and higher.

  9. humbled

    all Asset classes up ~
    took heed and switched to long side last week paid off, in just a few days …

    thanks Gary for cycle studies !

  10. Gary Post author

    Take heed folks. This is not an exhaustion move like some underwater bears would like you to believe. This has been one of the most powerful breadth thrusts in the last 50 years. This is a market getting ready to break out of a year long consolidation. When it does this is going to go a very long ways. And there are trillions and trillions of currency units to push it.

    1. Gary Post author

      How do you figure that?

      The S&P is up almost 7% (remember me warning the bears that the market typically rallies 6-8% in the first 12-18 days out of an ICL)
      IBB is doubling that at almost 14%.

      Biotech has further to go to catch up because it got beaten down much harder during the 7 YCL. It didn’t have PPT protection like the S&P. But that’s why I like biotech much better. It has much greater upside potential.

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