The bad news is pretty obvious. You’re loooking at it. This has been most unusual market action. We have seen two severe downwaves which were complete surprises–sell offs which occurred totally without warning –as for example, absence of any top formation. In fifty years of market experience we have rarely if ever (perhaps 1987) seen this phenomenon. The present downwave may be on its way to test the previous low. If it took out the low there would be a strong possibility of an extended bear market. We are considering going short, and at present have only a very small gold position — otherwise capital is in cash.
Below the long view of the market:
Almost forgot the good news. When we get a recognizable bottom prices will be bargains. Readers may be interested in our book Ten (10) on bottoms which may be found Amazon.