October has been a brutal month for stocks, bonds and commodities. What we have experienced is the essence of what I described last quarter in my No Where To Run commentary. The few sectors that remained intact coming into the July peak, namely oil, utilities, and real estate, have also given in to the selling and are still leading the markets lower. As Martin Pring describes in his business cycle books, we have entered stage 6 of the cycle where nothing performs well. The silver lining of Stage 6 is twofold. First, it is the shortest of all the business cycle stages and two, the next event is Stage 1 where everything moves higher and we can shoot darts at the market to make money. Of course the best buys for Stage 1 often occur during the emotionally darkest moments of investor psychology. While the markets and our indicators have approached the buy zone and I anticipate a substantial rally, there are a couple troubling aspects that warrant respect and caution.