The herd was extremely bearish equities, reflected in the AAII (American Association of Individual Investors) data… with only 20% bulls, the lowest number of bulls since the March 2009 lows. Support was at hand along with a series of downside wicks, plus a bullish falling wedge.
The Results of following the Power of the Pattern…. More “Pocket Change!”
The 500 index gained over 3.7%, Chile remained hot with a gain of over 4.2% (gaining over 13% since the purchase on 8/16) and TLT (20-year bond ETF) lost over 1%.
The biggest gainer of the week was our position in XHB (home builder ETF), which made over 5.5% and is up over 8.5% in 6 business days, since suggesting to buy it in this post.
Thanks to all for your viewership, quality email/input and kind words per how the trades are working out.
For more pattern updates and opportunities….stay tuned.
P.S. For those celebrating….Happy Labor Day