Marketviews – Ike Iossif
08/06/15 – China’s Shanghai Composite (stock index) is corroborating the outlook for a sharp drop in global equities during middle third of 2015 (May–August 2015: ‘The Capitulation Phase’ of the 40-Year Cycle of Stock-flation). 4050–4100 resistance holding… Quick drop below 3100 expected!
Eric updates his outlook for global equities to plummet following the May/June 2015 time from when his previously-described ‘Last Man Standing’ index should peak and turn down. That ushered in a precarious period from May–August 2015 – likely stretching into late-Sept. 2015 – when an initial ~20% decline has been forecast. China’s equities are leading the pack and should see another quick drop that would amount to a ~40% decline from its mid-Junepeak.
As Eric has described, June 2015 ushered in the time when all the ‘cars of the roller coaster’ had finally passed the peak and a precipitous decline was/is poised to take hold. However, the real trouble is still forecast to wait until aftermid-Dec. 2015. [Shanghai Composite cycles project an important bottom in 2016… during a very specific period. A more significant downside target – well below 3100 – is the objective for that low.]
Eric also updates his outlook for Gold, Silver & the XAU (Gold/Silver Index) – reiterating why all three should be treated independently and when gold & silver stocks could continue to languish. He again stresses his multi-year downside target for Gold – at 1033–1045/GC – where Eric has long forecast the yellow metal to reach (before a bottom becomes likely) AND likely hold!
Eric includes his outlook for Bonds & Interest Rates and elaborates on his expectations for Commodities, emphasizing why he believes 2016/2017 will repeat an inflationary pattern in food prices (Food Crisis) and see large rallies in many commodity prices.
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