On May the 14th, I shared that the world was at risk due to two key reasons…(1) Bearish rising wedges had formed around the globe and (2) Correlation risk was extremely high! (see post here)  

The “Power of the Pattern” was suggesting that a Domino effect was close at hand, that if one support line broke, they all would and investors that remained long would look like the girl on the slide!

On August the 4th I shared the photo above…suggesting that their was not going to be many places to hide (see correlation risk post) .  Many Wall Street firms make investors feel they have to keep their money at risk all the time...my mindset, just because the music is playing, we don’t have to dance to every song!

Earlier in the week I shared that the Shanghai index was breaking a 20-year support line in the chart below (see post here)


Below is an update through last nights close of S&P 500, as it closed at its Fibonacci 38% retracement level…


I shared two days ago that the 500 index looked like it was ready to run out of gas around the 1,212 level (see post here) and that the typical 20% rally off of the high VIX readings looked like it wasn’t going to take place.

As a reminder, I am not a Bull or a Bear (see post here)….We live in great times everyone!  The reason I say this is that the variety of tools to “enlarge portfolios regardless of market directions” have never been better!!!   (check out how RWM and SMN are doing today!)



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