rbreese

Coincidentally, Gary Savage has also recently been likening today’s market to 08/06 through to 02/07, calling it a ‘runaway move’, in which sentiment hit bullish extremes during the first part, and then cooled during the second half, as everyone started to try and pick a top.

 And, as you say, corrections were always mild 3% pullbacks at most - ‘measured corrections’, Gary calls them. And these became more frequent in the second half.

 The usual trading tools didn’t work: oscillators mostly signaled overbought conditions, momentum was diverging down for 4 months, and COT reports had become extremely bearish by November – 4 months early.

 The best strategy during this period was to just go long. If we’re really in for a repeat of the 08/06 – 02/07 market, then the miners are the place to be according to Gary, for whom it’s an article of faith that gold is in a secular bull market.

 But even if you’re not a fellow believer, it seems to me that many of the miners have been hammered down of late and have plenty of upside, e.g. Matt’s Friday pick, GRS.