JUST THE FACTS Smart Money Tracker Wednesday,

JUST THE FACTS
Smart Money Tracker

Wednesday, April 9, 2014
DAILY COMMENTARY FOR APR. 9
Daily commentary
Posted by Gary at 10:37 AM 0 comments
Monday, April 7, 2014
FINAL BUBBLE PHASE FOR THE STOCK MARKET: FINAL CAPITULATION FOR GOLD
After two hard days down in the stock market I'm going to take a contrary position and say that this is just a normal profit taking event and that stocks are going to recover and head back up to new highs. I still think this market needs to have a final blowoff bubble phase before the bull can die. The final bubble phase for stocks should usher in the final capitulation stage of golds 2 1/2 year bear market. For those like SMT subscribers that are sitting in cash, this final capitulation is going to represent one of the greatest buying opportunities of this generation.

First off let's take a look at the stock market:

We've had so many calls for a crash over the last year that you just know the bears are salivating right now thinking they are finally going to get their wish. However, I don't think we can have a crash in the stock market until we complete a true parabolic structure. Notice that during the final parabolic move in 2000 the NASDAQ had two back-to-back 10% corrections, one of them unfolding in only three days and completing what looked like at the time a double top. The shorts that jumped in at the bottom of that second 10% correction then got absolutely destroyed over the next six weeks as the tech sector proceeded to rally 34%.