On 10/13 the “Power of the Pattern” was reflecting a bearish pattern looked to be forming in Cattle futures in the chart below (see post here)

Why would Cattle be important to your 401k or long stock positions? Look at the second chart below how Cattle futures impacted 401k and long positions in 2008!


The chart below is an overlay of the 500 index, Cattle and Corn prices in 2006-2010.  In 2008, Cattle and Corn moved higher for a while even though the 500 index was creating a series of lower highs.  Once Cattle and Corn broke support the 500 index started falling like a rock!


Turning the page forward, Corn has broken support and has declined over 20% of late

At (2) above Cattle Futures are attempting to break support of the flag/pennant pattern. Great Escape 1 started picking up downside speed when Corn and Cattle broke down. Watch these Ag products to see if Great Escape GE2 could be about to pick up momentum!


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