Why does the “Risk On….Risk Off” switch seem to change so often of late?
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Flag/Pennants patterns…which are created by a series of lower highs and higher lows usually suggest that a huge move is coming, upon the completion of the pattern, per a breakout/breakdown.
Stock/Commodity rallies seem to be short lived of late and declines as well. Odds favor that the short-lived declines and rallies have much to do with the “dueling flag patterns” above.
Portfolio construction/allocations/overweight/underweight will be determined by these flag patterns going forward!