Synchronized Tops in the S&P, T-Bonds and the …Market...trajectory, to likely exceed the 2008 high...

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Saturday, Nov. 12, 2016

Synchronized Tops in the S&P, T-Bonds and the Dollar Corresponding with a Rally in the Euro, to be sequenced by Gold

Below you see the tail-end of the Great Bull Market ended 2000, followed by a monolithic Diag

II Bear Market, about to go into free-fall. The bearish Diag II signifies the beginning of a long

plunge, just as the bullish Diag II between 1987-1991 signposted the start of a long Bull Run.

The Bullish Diag II, kicked-off with the 1987 Crash, recalled the higher magnitude transcended

immediately after the IVth Cycle Wave, between 1978 to 1982 in the New Wave Elliott™ Big Picture

Chart shown in figure #7 at the bottom of the page.

Figure #1

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The graph in Figure #2 shows 20-year T-Bonds peaking in a B-wave Bear Market Rally, already

started down, in a long Wave C to conclude the A-B-C Bond Bear Market since 2009.

Figure #2

Next, you see the Dollar in the final stages of a Bear Market Rally, 2008 also on its last legs, before the long Bearish Trajectory begins. Figure #3

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As the Stock Market Crashes, safe havens in the Dollar and dollar-equivalent US T-bonds

will no longer exist, as three will free-fall in lock-step. Meanwhile, the Euro is on a

launching pad, set to skyrocket as the prime beneficiary of capital flowing out of the US.

While the Dollar is peaking in the B wave, the €uro is just beginning a similar, long upside

trajectory, to likely exceed the 2008 high of $1.60 per €uro, versus $1.089 currently.

Figure #4

Below is Gold completing a pullback to $1075/oz. before it too, skyrockets, in a long B Wave, Bear Market Rally. As the Junior Gold Miners, represented by the ETF, JNUG, will drop to 6.90. Figure #5

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In the intervening time, the $VIX volatility index will explode to the upside, in a very low-risk/high-return trade. Since the $VIX mirrors the wildly volatile Bear Market inversely, it must be swing traded, rather than held to lock in profits. Otherwise, unlike typical Bull Markets, gains will be frequently given back. Figure #6

Finally, the Big Picture US Stock Market below in New-Wave Elliott Channel™ indicates a likely penetration of the lower parallel, concurrent with the transition to the higher, Grand Supercycle magnitude.

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Figure #7

In summary, with the exception of inverse ETFs, such as the $VIX volatility index, such as those

included in Exceptional Bear’s Asset Allocation, including Natural Gas, Crude Oil, inverse Small Cap Stocks, inverse Financial Stocks, inverse Emerging Markets and China, both long and short. all markets equity asset classes turned Bearish since at least 2008, and many like the US long before. The logical alternative to dollar-denominated T-bonds is the Euro as Cash. After a lag, Gold too will join the Euro as an intermediate-term safe haven. Eventually all long asset classes, including commodities, will succumb to the Bear, regardless there will always be intelligent alternatives to long equities. There is no better time to test drive our award-winning market Timing signals, with a subscription to Exceptional Bear. The cost is just $150 per month and

Eduardo Mirahyes

Synchronized Tops in the S&P, T-Bonds and the …Market...trajectory, to likely exceed the 2008 high...

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