So of all the charts I can show you, I picked copper. You know what the SPX chart looks like. But what you may not know is that Copper has been hovering around at a major support line that connects from the 2011 bottom through the June 2012 low right up to last Friday and it is now violated. It would have to turn up immediately for us to consider the bears are just testing support and are going to pull back their bets. It’s just not likely. As you can see from this chart, there’s lots of support but we could be sitting right at a major imbalance point that drives markets much lower. If it’s going to happen, this is the time for it. So we are ready, have been ready and are always ready at these major time windows. We’ve been identifying them successfully for the past 14 years. Some are bigger than others but we usually get the reaction right on schedule.
By the way, let me just add one thing on the bond market. Most were already counting it out. It's eight months off the high and behaving terribly. Our thoughts were it had one more chance to turn up, and I wanted to see if it would take it. That opportunity came at the seasonal change point. For those of you who don’t know, the bond market found a low at 161 days off the high and as I’m looking at the chart right now, it has made a left turn higher.
So there’s our market timing work and then there’s the news event. To say I’m saddened by the events in Cyprus is an understatement. But my job is to identify when a market can turn and from all the new information we have now, everything is happening right on schedule. By the way, I’ve just been informed by my new publisher, Wiley, that the second edition of “Breakthrough Strategies” has just gone into production. The book is likely due out in September and in addition to sharing with you how you could have identified the 2007 top on your own, it has case studies that explain all of the important turns of the financial crisis as well as some of the more important ones since then. The case studies of the timing sequences are information nobody else has.
So let’s see if there are any black swans playing the trailer with this Cypriot crisis.