Layered Megaphone Fractals Emerging
In our 2014 Thesis Paper "The Globalization Trap" we laid out the rationale for our "M TOP" expectations playing out. Over the last year it has been unfolding right on target.
Positioning our "M" Top
We are presently seeing the development of our 'Deflationary Leg' which we refer to as "Real Deflaltion". This has been evident for some time in the Commodities Complex and Credit Spreads arena but has become blatantly obvious to the public with the recent Oil price shock.
We expect the Fed to capitulate soon on its signals of tightening rates in the spring as deflation becomes an accelerating problem. Between this deferral and guaranteeing certain troublesome collapsing collateral values, the markets will subsequently find support and head to new highs in 2015.
As we spelled out since 2010 when we published our Thesis paper "Extend & Pretend":