In reviewing the charts from the Chart Room over the weekend I came to the conclusion that in terms of timing the markets you don’t want to think in terms of price right now, but in terms of time, where again, we are not looking for a blow-off top in the present intermediate move until sometime in the first quarter next year, with early February the favored target from both historical and cyclical perspectives. How did I come to this conclusion? Answer: As you will see in the charts below, several breakouts and trend blow-offs are in the process of tracing out, meaning more time is needed for this to occur no matter how overbought technical conditions in the market are at this time. And while it’s true that everything from stocks to commodities are intermediate degree overbought, what this means is conditions will become even more overbought, and as a result, it’s possible hyperinflationary conditions in the US could at a minimum be tested.
