Today’s 12% smash in the market is fully on scale with the crash of 1929. It’s not a 1987 purge within a bull market its a crash inside of a bear market. How can I say that? Because that is what Charles Dow’s methodology says. (Dow Theory). Using his theory I identified the day this bear market began and have never waivered from that call. The Bear market actually began on Oct 3rd 2018, but we did not know this until December 14th 2018. Dec 14th was the day that according to Dow Theory we triggered a bear market sell signal. That means that everyone should have “gotten out of the water” and headed towards safety. (short term treasuries). At that point for the traders out there you can trade the market (up or down) but do so knowing that the primary trend is now down.

But of course the FED did its pivot in Jan 2019 and reflated the market for another year. Of course this required Non-QE beginning in the early fall 2019. Since Oct 2018 the transports have diverged from the Industrials. This meant that the sell signal given in Dec 2018 remained valid. One had to be patient, but Mr. Dow proved to be correct despite all the naysayers. This always happens at the top of a bull market.

Since we now know that the monied Wall Street insiders knew the FED was going to announce Sunday afternoon 700B QE with zero rates they crashed the gold market on Thursday and Friday. They wanted in at discount prices. Monday morning was the bonus as one more gold raid led to the final wash out of all weak hands. An incredible buying opportunity for those who had any money left and the guts to step up to the plate. (I had little of each, but gave it my all of what I had remaining)

To me today was a momentous day because I think it showed the two prominent trends now in the market:

1.The FED has now lost control (market down 12% after them giving it their best shot)
2.The gold bull market never ended. Now that the big money has their starter positions they can now begin to move into the sector.

The GDX & GDXJ ETFs had inordinately large moves today because they were playing catch-up to their underlying NAV’s. But we saw awesome moves in some beaten down stocks. Up over 50% from intraday lows… unlevered.

The two trends have now reversed. Over time money from across the spectrum will come to recognize this.