Euphoria Stage

IMG Auteur
Published : December 03rd, 2012
317 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
Our Newsletter...
Category : Gold and Silver





I think we are on the verge of entering the euphoria stage of this cyclical bull market.

The euphoria phase is where the rate of change starts to accelerate as traders become convinced that the economy is booming, and will continue to boom into the foreseeable future (the last bull market), or in this case that QE3 is a magic elixir with no unintended consequences.

During this final phase the character of the intermediate cycles should change and instead of a modest move above the prior intermediate top we will see a strong acceleration and a significant and sustained breakout above the September high of 1475. All of the traders that have convinced themselves that QE is having less and less effect are about to be caught off guard as we move into the euphoria phase of the bull market.

You can see in the chart below that in 2006/07 the intermediate cycle accelerated rapidly past the prior intermediate top at 1326 in a classic runaway move. While this certainly felt good at the time, it was the beginning of the end as the housing and credit bubbles began to implode.

I think we are on the verge of something similar as I believe QE3 will drive the market high enough to test or marginally break the all-time highs. However, it’s also going to start an upward spiral in commodity inflation that will eventually poison this fragile economy and be the straw that breaks the camel’s back.

For the next couple of days I'm going to run a Christmas special, one penny for the month of December. This is only valid for new subscribers. If you have already subscribed to the SMT premium in the past the system will charge you the regular $25 monthly rate. At the end of the month your subscription will convert to the normal monthly charge unless canceled before then.



<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Toby Connor is the author of Gold Scents, a financial blog with a special emphasis on the gold secular bull market. Toby's premium service includes daily reports and an extensive weekend report.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
East Continues Stacking Gold While The West Stacks Paper Illusions
If the counties cartel owned private Central Bank acquires the Gold with cartels bank money for the country it supposedly represents who actually o...
Russia Did It!
23 Marprljr2
I have not trusted whatever the US government has reported,said,demanded since 911. The government ignored the laws of physics in explaining pretty...
Russia Did It!
23 Markevthorne3
One of the most sensible, level-headed articles I've read on this subject for a long time.
Drums Along the Potomac
23 MarGypsy
I see there's a HUGE market for Conspiracy Theories and FAKE NEWS in the U.K. ~ from the Top down. Theresa May runs her Conspiracy Theory up her f...
Stephen Hawking – Doomsday Prophet’s Top Five Predictions
19 MarThemis1
Stephen Hawking may have been brilliant in his own sphere of science. This does not necessarily equip him to make accurate pronouncements about ot...
Stephen Hawking – Doomsday Prophet’s Top Five Predictions
17 MarWatchdoctor3
In my opinion, yet another NASA actor promoting ''leaving the earth'' as a viable alternative to living in peace with our neighbours. Not even sure...
Drums Along the Potomac
18 MarThemis1
While I, too, don't give a hoot about the Skripals, the UK cannot tolerate foreign agents running amok and potentially endangering innocent British...
School Daze
15 MarJ.
@bfsiedel, While I agree with much of what you posted, regarding whether or not school is broken depends upon one's expectations of public school....
Most commented articlesFavoritesMore...
World PM Newsflow