I Love It When A Plan Comes Together!

You have no idea how amazing it feels when you have someone else's work match up with your own. Let me explain.

I was recently watching a clip over at Charles Nenner's website (www.charlesnenner.com) that I had missed the first time around. There are a few clips on his site but the one I'm referring to can be found HERE.

In it, he comes to the following conclusions based on his own cycle work:

• Treasury yields should stay low for another 1.5 years (into 2010)
• 10-year treasury yields should then rise into April 2013 reaching a peak around 5.5%
  
• A cycle bottom in gold/gold stocks should occur in 6-7 weeks (i.e. around August 6, 2009)
• A rally in the USD is likely to begin at the beginning of July

Let me start with interest rates.

INTEREST RATES

On June 15, 2009 in my post entitled Ah Hoye, Part Deux! I commented on an interest rate model Bob Hoye is using based on the 1930's depression. I've posted the chart below for ease of use.



This double-dip phenomenon in interest rates that Mr. Hoye's model is predicting is precisely the same phenomenon Charles Nenner's cycle work is predicting.

My post also included some of my own cycle work which you can view below. All of this is excellent evidence suggesting low interest rates until mid-to-late 2010 and a significant rise thereafter (or conversely, a bidding up of bond prices into the meat of the bear market, followed by a significant sell off).





GOLD AND GOLD STOCKS

Charles Nenner's cycles suggest a bottom in spot gold and gold stocks should occur around the first week of August, which PRECISELY matches (almost to the day!) the top of the equity rally my own SPX forecast is projecting (August 7, 2009). You can view the turn dates my forecast is projecting in my post entitled Surprises, Surprises. Again, I've posted the chart below for ease of use.



SUMMARY

Everything I could possibly look at suggests the EXACT SAME THING:

• The bear market in equities/commodities continues into 2010
• A recovery beginning mid-to-late 2010 will yield higher interest rates (so if you have a mortgage, LOCK IN THOSE RATES IN 2010!)

The only discrepancy I have is WHEN does the equity sell off resume? Is it July 1 or August 7?? In any case, the turning point is soon approaching. Stay on guard, and more importantly stay short!