Anyone notice what the “Patterns have been suggesting we should do” of late? Below is a small summary of suggestions from last week….

Widest Spread between the Nasdaq 100 and the VXN in almost 10 years, with the NDX at a potential “Double Top”  (see post here).   Game Plan…Don’t own the NDX 100, pick up VXX if so inclined! (most aggressive way to score on defense possible!)   This spread reflected the market is EXTREMELY OVERVALUED!

Is a 100% gain enough? Soft commodities and Grains were breaking almost vertical support.  Game  PlanDon’t own the grains, if so inclined pick up AGA (2x Inverse Grain ETF) . (see post here)

Crude Oil is facing long-term resistance (see post here)….Game PlanDon’t own Crude Oil, if so inclined pick up DUG (2x inverse oil stock ETF).   Could pick up DTO as well.

Silver facing key fibonacci resistance, after almost vertical climb…Game Plan…Don’t own Silver at this resistance (see post here)  For those so inclined you can pick up ZSL (2x inverse Silver ETF).

CNBC did an interview with Jeremy Grantham last week, where he highlighted that having “CASH” provides investors with “Optionality!”   Having cash can do two things: protection during declines and it allows investors to take advantage of declines.  (see interview here)   Very good BIG PICTURE interview!

My basic game plan/beliefs…Continue to “harvest (raise cash) up against resistance!” Not losing monies in a market decline, is VERY IMPORTANT!!!  Attempting to score on defense is a personal choice and for aggressive investors only…


See what the “eye chart” is suggesting for investors to do?  Read what it says!

Summary of the patterns …Score on defense in Nasdaq 100 (stock), score on defense in the Grains, Score on defense in Crude Oil, score on defense in Silver.   These positions are what the “patterns are suggesting”, not a personal opinion.   All of these positions are owned with stops.

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past