"History doesn't repeat itself, but it often rhymes." - Mark Twain
50 years ago marked the onset of the Yom Kippur War of 1973 (October 6 to October 25).
In the following 7 years:
Crude went from $5 to 50;
Interest Rates from 6.5 to 18;
Gold from 42.22 to 875; and,
S&P 500 (SPX) Fell from 108 to 60 in 12 months:
The onset of war did not come at "the top," but instead came about one-third of the way into a bear market, i.e., at the beginning of the third wave down in an 5 wave impulse pattern. In other words, about where the EW analysis of the major stock indices is right now, 50 years later, as detailed in the daily price charts below:
SPY Intermediate Term Trading Model
This is our main trading model in Blue Line Premium Trading Service, one that had our option traders buying puts in advance of a third wave down at multiple degrees of trend throughout August and September.
IWM Short-Term Trading Model
This trading model has been the major focus in Blue Line PRO Service and has provided multiple entries for IWM & QQQ puts over the past few weeks.
Past performance is not a guarantee of future results
The Week(s) Ahead
Geopolitical developments over this weekend have injected an historical perspective into how financial markets will react in the weeks, months and perhaps years ahead. Stocks, Oil. Gold, Bonds & Interest Rates all bear watching...and trading.