Hello All

Just starting this blog today. I've done this a few times before but this one has a different scope. In the coming days and months I will follow the unfolding of what is sure to eventually become one of the most devastating economic depressions of all-time.



Stocks ended a Super Cycle degree advance dating back to 1932, the Great Depression lows at the peak in 2000, and have ushered in a high order secular bear market.

As far as the short term goes I think the powers that be will be able to power the markets even higher this year by pumping more fiat money into the system. This is just a charade though and will ultimately end in an inflationary bust. Any extended rallies this summer are merely rallies in what is now a secular bear market. Remember that rallies in a bear market are usually strong and momentous, just as corrections are in bull markets. This is because the weak hands are shaken out of the market. But the smart money will always be with the trend and will block out the day to day noise.

Today the S&P closed at 1372 and change. Could we retest the highs of 1576 set in October of 2007? It would definitely not surprise me but any rally that takes us this high will be met with serious resistance and will be the end of a wave up. When this rally is over the target for the next wave down is 1000. This would be devastating for the market as we haven't seen these levels since the fall of 2003.