The “Power of the Pattern” reflected below that markets around the world had created bearish patterns back in May, reflecting a two-thirds chance they would all move lower (see post here)

From a portfolio construction standpoint…Risk can be viewed as “how far can something fall” or “how many of my assets move in the same direction!” 

A large degree of risk was at hand in May due to… bearish patterns were at hand and the majority of markets highly correlating.


Below is an update to the above 6-pack, reflecting that everyone of these key markets are lower in price 6 months later



The above 6-pack reflects that Global resistance is at hand in each of these markets at (1), at lower levels. These lower prices are results of the very large rising wedge breakdowns from May. 

The “Power of the Pattern” suggested in May to lower exposure to risk assets around the world and until resistance is taken out to the upside, portfolios should be under-weighted towards the risk side.

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