As I write 50 minutes before the close, the Dow is down 232 and the Transports are down 113. This is far from the dreadful 10 percent correction that has been missing in this bull market. The collapse of commodities -- oil, copper, and foodstuff -- has served to bring about a period of hysterical fear. A 10 percent correction will take the Dow down to roughly 16,200. But so far, a decline of about 600 on the Dow has served to frighten many investors out of their minds and out of the stock market.
I believe what we are seeing now is the preamble of the third phase of this giant bull market. If I had to guess I’d say that the base of the coming third phase could last into June. Thus the bull market will test our patience as we wait for the inevitable third and final phase of ... Log in or subscribe to continue reading.