Microcosm

Today is another microcosmic representation of the Macrocosm, whereby we note that for a day at least, things are going the way that the next market phase will go… as a trend.

macrocosm

Today the precious metals are bouncing and stocks are dropping…

spx

Commodities are dropping or weak…

dbc

In particular, crude oil is weak…

uso

And industrial metals are weak…

dbb

These are the planets that are going to align when the micro becomes a trend and hence, becomes the macro.

Understand two things…

  1.  We are not yet in a trend.
  2.  But on days when the gold sector goes opposite to everything else, it firms up the idea that it is going to be THE counter-cyclical play… just as we have been saying for oh, what?  Years.

This is why it made no sense being a gold bull for the last few years, covering your eyes, blocking your ears and going ‘la la la… I can’t hear you… la la la!’ while the economic ‘UP’ cycle ground on.

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