The Basic Material stocks have completed a Supercycle Top V, and Cycle Wave B up from 2009 – 2014 has just completed. The Gold/Sector XAU ($181bn) peaked later in 2011 but since then has also come off dramatically. Cycle Wave C down is to come for both indices. The Basic Materials weighting in the S&P500 at 2013 year-end is 3.5%.
Our sample stocks exhibiting these patterns are BHP ($180bn), RIO ($100bn), DD ($61bn), DOW ($57bn), AA ($16bn)