The charts below make it crystal clear that we are on the verge of a major bull market advance across the PM sector. While these charts are for the Market Vectors Junior Gold Miners ETF, what happens to the GDXJ has major implications for the whole sector, for the simple reason that it is not going up without the entire sector going up too.

Janet Yellen and the Federal Reserve are so behind the inflation curve, and many other market implication curves, that we probably are staring at a 35% chance of a Hyper-Inflationary period by the time the Federal Reserve realizes that "noise" is actually real inflation!

When there is lots of economic activity, there is lots of money changing hands. When there is not very much economic activity, the pace at which money circulates through our system slows down. That is why what is happening in the U.S. right now is so troubling. Let me explain.

The U.S. stock market has been closing at one record high after another but, despite the seemingly unending investor optimism more than five years into the current bull market, some worrisome issues are continuing to build under the surface. Like all past bull markets, the latest episode will eventually come to an end and a new bear market will begin and it has the potential to be even worse than the two previous downturns since the start of the new millennium...

We estimate that a 'fair price' for the market is a Shiller PE of around 16. With the market at close to a Shiller PE of 26, the market is overvalued by about 60%. Now is not a historically good time to initiate a position in the S&P500.

As Warren Buffett is famous for saying "...be fearful when others are greedy and greedy when others are fearful” and now is such a time. The crowd can be right for a long time, but they are rarely right at extremes and, while this time may be different, the probabilities suggest that at the very least it will be a more difficult environment for equities going forward.

The 4 fundamentals and technicals discussed in this article accurately called stock market crashes in 2000 and 2007 and these same market metrics are again TODAY warning that a possible financial tsunami is brewing on the horizon. No one knows for certain WHEN the tsunami will hit Wall Street...but, without question, today’s stocks exhibit extremely exaggerated valuations, and extremes never last, so make no mistake, a major stock sell-off looms.

The S&P 500 is now up over 180% since troughing in March 2009 and it has been almost 3 years since the stock market experienced a 10% correction. Historically, market corrections happen approximately every 2 years on average. [As such,] we think that this rally is getting very long in the tooth and we wouldn't be surprised if we have a healthy pullback in the coming weeks or months.

...For US stocks — and by implication most other equity markets — the danger signals are piling up to the point where a case can be made that the end is, at last, near. Take a look at these examples of indicators that should scare the hell out of anyone with a big stock portfolio.

You can call this current stock market a blowoff or call it a Wile E. Coyote moment or call it a divergence or call it a disconnect or call it a lapse of judgement. You can call it whatever you want but I call it the “Honey Badger” market because this is one “crazy, nastyass” stock market - and I can’t believe I’m watching it happen all over again.