S&P Downgraded European debt on 1/17 and the Power of the Pattern reflected this could be good news for investments- (see post here) … Greek ETF(GREK) gained 40% and the National Bank of Greece(NBG) gained 100% in the three weeks after the downgrade-
Was bad news good for stocks? Could good news do the opposite to them?
CLICK ON CHART TO ENLARGE
Yesterday morning Greek Leaders announced that a bailout agreement is at hand. (see CNBC article) How interesting this news comes out as Investor bullish sentiment is hitting loft levels, tons different than 120 days ago (see post here)
Could this positive news out of Greece be bad news for investments? Will be tough to stop the positive momentum the market has… do make a little note on the calendar of todays news and lets see down the road if it was a key date like 1/17/2012 ended up being.
buy on rumors, sell on news!
I really appreciate the observation you do! they are always of great value!
thanks Chris for the time you dedicate to this blog! I think one of the most powerful
A Greek expression says “there won’t be enough places for the priests to bury the bodies” which means that whoever has been buying risk assets mid-January on, will lose out as time progresses within H1. We will climb in H2 and collapse by the end of the rally as the gigantic megaphone pattern in SPY resolves to a fresh the bottom potentially Italy imploding and China’s growth decelerating aggressively at the same time.
For Greece there is no recovery hope ever and certainly not in the EUR.
By the way, great technical work, Chris!
Tom…Thanks for your viewership and kind words.
Does is seem like it can pay to look at the popular headlines and then do the opposite? Can we let the popular news stories be of our benefit, by investing in the opposite direction when the “Power of the Patterns” and sentiment line up? I think so.
Thanks again Tom,
Great job – again…