One hundred years ago yesterday, the Titanic sank to the bottom of the ocean. Does the Captain of the Titanic and running a portfolio have anything in common? Yes. Their are small things to watch for that can make a big difference in the future values of your portfolio. From a Marco perspective, if the Titanic had made some small changes in its direction, the course of history might be a good deal different for this great ship.
Many of us are Captains of the portfolios we manage. When certain patterns take place, odds favor that paying attention and being willing to make small adjustments while at the helm can be a good idea!
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Bearish rising wedges at resistance suggest what? A two-thirds odds of lower prices are in the near future.
Do these patterns suggest that the markets will sink like the Titanic? NOT AT THIS TIME!!!!!!
They do suggest that if you are the captain of your portfolio, you should be open to protection of the cargo you are in charge of though!
Last Friday (see Apple/NDX post here) the chart below reflected that bull market leader Apple had broken below a key rising support line.
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The day is far, far, far from over….. at this time this morning, it does appear a few more people are open to selling shares, as Apple is down $10 per share (1.5%) and the NDX 100 is down almost 1% while the Dow is up over 65 points. (see NDX 50% Fib level resistance here) Keep a close eye on the price action of this tech leader!
What conditions should a captain be most concerned about right now since small breaks of support have taken place at the top of these rising wedges? Upside wicks that are created by “failed rallies up against new resistance levels” which so far have NOT taken place!
