We have been in Phase III since October, but the true damage lies ahead. We have simply been digesting the initial breakdown into Phase III for the past 8 months building out a H&S pattern. Its now complete. Also keep in mind that its typical for the POR to come about 1/3 of the way into a bear market. It developed according to script.



Just think, I don’t believe we have yet seen a POR in the bear market for the oil stocks. Pretty eye opening if that turns out to be the case. Back in March I put this chart together as a fearless prediction of how the bear in the oil stocks could play out. So far so good…



Just for fun here are two examples of what a “Death Star” phase III bear looks like on two sector leaders

sc-1343 sc-1344