The Honey Bee Effect
Last week the weather was extremely warm, over 20 degrees from normal temperatures that one would expect in January. I had my window open and a honey bee flew in through my patio door. After buzzing around me I gently urged him to go back home and out through the patio door he went. The Market Media Matrix has been running over time with optimistic news of earnings and the falling price of natural gas. The case for my honey bee flying into the window was higher temperatures recorded ever in the month of January. Traders who were betting on a typical cold January have been suffering from the weather effects caused by the honey bee. Since the weather has been unusual, the financial markets are also confused. The honey bee must have thought it was spring time and he went out the hive to work hard for the honey. Later that week, it began to rain and turn colder. It rained so much; we had flood warnings in the surrounding counties. By Monday morning, the rain had turned to snow with freezing temperatures. Then by Thursday, the snow was gone. We expect the same weather pattern for the weekend, rain, followed by snow. I can make the comparison to the financial markets. First we had decreasing oil and natural gas prices, followed by a sharp reversal of the prices. While price reversals may seem random, investors and traders are being caught in the financial turmoil of rising inflation.
However, these events are not random and neither is the honey bee travel route. You see honey bees communicate with other members of the hive through a complex series of dance movements. Scientists have discovered what the movements mean through observation of the bees in their hives. The financial market seem random to the casual investor, especially the long term investors, but there is a method to the random events. There are bull market seasons and there are bear market seasons. The repeating cycle financial markets cannot be denied due to human nature. Today, our world is connected through the internet not unlike the biblical days of Babylon. The Market Media Matrix tries to assume the queen bee position, dictating what everyone should think about everything. Fortunately, our brains are slightly larger than a honey bee’s. But, I still have my doubts after reading that 11% of the voters think that Hillary Clinton is a conservative according to a recent poll. Short term expectations are being used to convince you that we are in a bull market season. Meanwhile, the long term trend is in a bear market season that cannot be denied even by the Market Media Matrix. I have proclaimed that the secular bear market is here to stay, so if you want to make money, you have to play. You can’t “buy and hold” or your profits will dry up before you are old.
Look at the chart in the blogs post, I can show you the secular markets in action using a long term chart on gold vs. the Dow Jones Index. You can clearly see when gold prices rise, inflation is not far behind. Inflation fear will be exacerbated by the Fed when it raises interest rates higher. The market will continue its honey bee dance downward, just as in the last secular bear market starting in 1966 to 1984. There will be many opportunities for spectacular short term bull rallies of 50% to 100% gains, while the market is locked into a trading range below 12,000 points on the Dow Jones Index.
The Harmonic Stock Clock is the easiest trading system to use, and yet there will be people who think it is too easy. Just as no one can predict the weather, just the time of the seasons, the Harmonic Stock Clock system will help you protect your profits and make you money. The financial markets are like the honey bee, out early looking for honey, not knowing when spring begins. I just hope that most people who read this will take shelter before the financial markets turn colder.
Good luck,
God Bless
Doc
Ps. The Fed is raising capital for a possible market event over the next 3 days?
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
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