Importantly, if the current wave goes below what is marked as red 3 below then this model is busted, likely with very bearish near to mid term implications. For those wondering when deflation is going to hit the economy just look at the wipe out in energy, metals of all kinds, cotton, wheat/grains per WEAT below, etc. Deflation is raging right here right now and the quiet collapse of the middle class is proof.
Sooner or later it will catch up to the major stock indices as well.
Thank you for posting WEAT!
ReplyDeleteEric Hadik bases his analysis on cycles; he has been pretty accurate therefore many traders look forward to his forecasts on gold, stocks, USD, commodities, etc.