There are major signals from 2011 that are repeating today.
They include:
1. A significant accumulation of TLT,
2. Extreme futures trader positions in the Swiss Franc, Canadian Dollar, 10-Yr Note, and
3. The completion of a gold cycle.
In addition to the above signals a silent collapse of Dow stocks is in progress.
Based on the above signals a significant event is coming in the weeks ahead and would be expected to shake the financial system. It may not have an immediate impact on stock markets, but the flight to safety will be obvious. Interest rates will decline. A short quick decline in the stock market could occur, but affected stocks will drop dramatically as the year progresses. This also means the U.S. Dollar will start a long term trend to move higher over the next several years. Gold will immediately hit a peak and then start a long term decline as the Dollar moves higher.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
