The Stock Market Smells Deflation

Monday, October 3, 2011
By Paul Martin

By: Clif Droke
Goldseek.com
Sunday, 2 October 2011

In previous commentaries we’ve talked about how the 6-year cycle is scheduled to peak around Oct. 1. That now appears to be all but certain following the last few trading sessions. Although the cycle has a 1-2 week standard deviation (plus or minus), it appears that it peaked on scheduled last week and that the stock market has lost the last remaining cyclical support it had throughout most of September.
Interestingly, it was the commodity stocks that performed the strongest in the last cyclical bull market from late 2008/early 2009 until earlier this year. But in the last few months these stocks have been under heavy distribution and have lately led the way lower for the broad market. The gold/silver stocks took a big hit earlier this month as you can see in the chart of the XAU Gold Silver Index shown here.

The Rest…HERE

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