If you don’t like the idea that China could fall another 50% and Commodities could lose another 30% – “Don’t shoot the messenger….shoot the pattern and the traders around the world that have formed them!!!”

The Shanghai Index and the CRB (Commodities Index) have both formed “Descending Triangle Patterns” which are continuation of trend patterns. If you’d like to read more about this pattern (read here)  

If support breaks, the size of the following decline, is determined by the distance from the top of the pattern to support. (1) above reflects the size of the pattern and (2) reflects the size of the decline, if support is taken out.

The Shanghai & Commodities index have had a rough couple of years, is it possible that this weakness could continue? If this pattern were to come true, what macro message would this be sending? What impact could this have on stocks & bonds?

Helicopter Ben hasn’t been able to stop these trends…Maybe Janet can?!?!?

These are important times….I am attempting to help members with these big trends, how to trade them and portfolio construction on a daily basis, using key pattern & sentiment analysis. These assets are some of the worst performing assets over the past 3-years….is this an opportunity???

If these patterns come true, this would impact portfolio construction in a big way! How does one know if these patterns break and become opportunities? Stay tuned, it has taken years for these patterns to form, so the outcome should be very important!!!

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