On 2/24 I mentioned that rear view mirror investing was rather easy, seeing around the corner/what lies ahead, is a little tougher. Yet if we can find tools to help us with the direction of future price movements, it can be very beneficial to our portfolios. I discovered over 15-years ago that the “Power of the Pattern” can be very beneficial in pinpointing key reversals and points of exhaustion!
In the 2/24 post I mentioned that the “Power of the Pattern” was suggesting “Deflation/Lower prices” looked to be around the corner and that “key trend reversals looked to be in store!” (see post here).
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The above 6-pack reflects that a wide variety of assets have broken key support lines after creating patterns, that were suggesting “trend reversals” looked to be in our future.
Game Plan…We took positions to score on defense, with stops in play should the trends reverse higher. The across the board breaking of support, in my opinion, should not be taken lightly!
Broad market/S&P 500 ….1,300 remains a key line in the sand. (see lucky 13 posting) Should 1,300 be taken out by a few percent to the downside, the gains in inverse ETF’s could become fairly large! Key broad market SUPPORT at the 1,300 level is STILL IN PLACE
At this time we are looking for relative weakness in Basic materials, Oil and Tech, with ownership of SMN, DUG & PSQ.