by Clif Droke, Gold Strategies Review
The broad equities market has gotten a respite from the selling pressure which plagued it for the last few months. Some of this can be attributed to the Kress cycle “echoes” which we reviewed earlier this year. The echoes, which are based on the 6-year, 10-year, and 30-year cycles, suggested that stocks could experience a rally in the March-April time frame based on past rhythms. To date that expectation has materialized as traders cover short positions that were built up to excessive proportions in prior months.
Adding to the upside in equities lately has been a long overdue relief rally in commodities and natural resource stocks. Much of the selling pressure plaguing stocks in recent months was a spillover of commodity market weakness. With commodities now on the upswing, stocks are getting a major reprieve.