I was able to borrow the document below from a highly interesting Zero Hedge article. It is well worth reading. We are not big on conspiracy theories, but this piece in particular gives some corroboration to our our theory that the current action in commodities is a consolidation rather than the end of a long-term cycle.
For short term traders, there are profits to be made in general equities and real estate at the moment, but those profits will give way to the primary trend eventually, and when they do, they will do so in spades. So be careful and (as always) consult a professional.
http://www.zerohedge.com/news/putting-it-all-perspective
Remember that we also called for a 5% pull back to happen in the near future, which we based on the Dow/Transportation relationship. So while one group of people are now loudly calling for the end of the current bull run, we believe that (at least right now), because there is no confirmation in the averages, that the bull run is not yet over - although some nimbleness is warranted since the transportation average is still lagging the Dow by a considerable margin. It looks as if the Dow may make a new intermediate low that the Transportation will not confirm, yet another sign of more volatility on the horizon.
BCG Back to mia Sep 11
Quote of the day: "Still think the Fed, ECB, BOJ and BOE won't print, print, print? Think again." - Tyler Durden
