The “Power of the Pattern” suggested a few weeks to own bonds (see post here). 

Now a breakout in bond prices looks to be taking place!


This breakout in bonds suggests that a flight to safety has been taking place over the past few weeks!  

 Are bonds doubting that inflation is an immediate concern? 

Did the “Power of the Pattern” in bonds sniff out some commodity declines ahead of time?  How is Sugar, Copper, Cotton, Grains, Gold and Silver doing of late?


The Russell 2000 is facing a very critical test this morning.  Should support at (2) be taken out, this leader to the upside most likely will become a leader to the downside…Small caps will become smaller caps!

Game Plan….Be an owner of RWM with a stop a couple of percent above current prices.  Keep a tight stop on the long bond positions…1.6%!

Sir John Templeton uses to share…..”In the investment business, it is better to leave a party too soon,  than to stick around too long!” 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past