The Time to Start Buying is NOW!!!!!

The VIX is an Index that tracks the market volatility and it actually should be named the “Fear Index”. I have been writing that this index would go as high as 30 however as I write this the Index is pushing 25 and stands at 24.79. Was I wrong? - - - Absolutely not! Why Not? Well no one can “Look over the Horizon” and try to foresee what MIGHT be ahead without looking at many more market indicators that allow us to take a peek into the future to try and guess what might be ahead! You who read me regularly know that I expected a violent spike down this summer in the markets. I expected the S&P to go down well below its 200DMA (Day Moving Average) causing the S&P VIX to rise above 30 and that did not happen. However, what has happened is that instead of spiking down the market has, for the last 6 long months, ground sideways and never did fall below its 200DMA. As this progressed very slowly during those months, the market started to catch up to the 200DMA with the result that as of yesterday it has finally broken through the 1285 level of support of the S&P and closed at 1254. This alone indicates that it should be buying time! Between the July 22, 2011, S&P 500 Large Cap Index 1345 close and yesterday's close; the Index has pulled back 6.7%. So, not the violent spike down that I predicted but rather a steady consolidation that has been in progress to the point where the S&P Index has now progressed under its 200DMA. Now let's get to the VIX (the anxiety or Fear Index). Last week, the VIX shot up to 26.2 which was the highest fear level since last March, 2011 during the Japan tsunami and nuclear but yesterday it closed back down to 24.79 indicating that the fear level is very close to having rebalanced and again this indicates it should be buying time. Consequently, I am not waiting for it to go to 30+. The bottom line is that the U.S. is broke. OK, there is no default but the US is and will be defaulting by printing more money (QE3) and paying their bond and treasury holders back in more and more worthless, inflated US dollars. Going into November and December this year, I still see the S&P going up because people are fed up with government and Marxist shenanigans. There is lots of money that will be coming out of government securities and there is lots of pent-up capital sitting on the sidelines. All that money will be seeking the safest havens that it can be invested in and it will be going into businesses because people simply do not trust government any longer. So money will be going into Safe Haven Assets. Gold, Silver and commodities should have a nice run. So in conclusion, I believe that this is the buying opportunity we have been waiting for and I advise that we slowly deploy our capital that we have been hording. Look for high yielding safe stocks and when and if gold and silver pull back - buy in. Right now Gold and Silver are the safest port in the storm.