My Advanced Pattern Recognition Engine
Two posts today. That means likely no more for the rest of the week. Now, I have to preface this posting with a few comments. I've probably looked at well north of 100,000 charts in my life. I did a little mental calculation and it might be as many as 500,000 charts I've looked at.
So, I've got this extremely sophisticated pattern recognition engine which alerted me to the chart below. This pattern recognition engine is the most advanced machine on earth for doing this type of analysis. It's better than anything developed in the labs of IBM, HP, Intel, Microsoft or if you like wildly expensive labs, Google or Apple. That pattern recognition engine is the human brain. It's an amazing invention so be sure to use it! Yours, that is.
Below is the chart of the Major Market Index. A little known index which is basically the twenty biggest publicly listed companies in the U.S. Remember what I said yesterday? The top 50 or so megacaps are driving the market. Longest run without a 1% intraday correction in half a decade. Last two times something similar happened we saw stocks crater. And what have I said for months? My models are still on sell (Or defensive if you foolishly choose to stay fully invested this cycle. Just an opinion not investing advice.) And that topping is a process and nothing in my work has proven to be anything other than expected topping action. Now, I'm not going to share my work but as I've said, I will share publicly consumable information to make you a better investor and assist you in managing your own finances.
Ok, the only time I've ever seen a chart like this is when a company has found the proverbial cure for cancer or topping. We all know the top twenty stocks are dull lethargic companies so they aren't cumulatively finding the cure for cancer. Of course, another explanation is we are experiencing hyper-inflation but gold isn't confirming that and neither is the dollar. So, I guess we can put the conspiracy theories analagous to the Weimar Republic on hold.
The moral of the story? If the market is going somewhere in a hurry without a breather, it's best to wait to see what the hurry is. Eventually, the circumstances will reveal themselves or a better opportunity to buy will emerge. Risk management/discipline are keys to long term investing success. Are we exactly done at this moment? Well, some of my short term models fell off of a cliff late last week. So, maybe we are and maybe we aren't. Maybe we'll float around for a month or three or maybe we'll start to see distribution after the close of books at the end of October. I don't know what tens of millions of investors are going to do tomorrow but we reached or will soon reach our target of 1360-1400 on the SPX and that means many shrewd traders are pulling in their horns. Enjoy the ride. We're going to Dow 36,000!
So, I've got this extremely sophisticated pattern recognition engine which alerted me to the chart below. This pattern recognition engine is the most advanced machine on earth for doing this type of analysis. It's better than anything developed in the labs of IBM, HP, Intel, Microsoft or if you like wildly expensive labs, Google or Apple. That pattern recognition engine is the human brain. It's an amazing invention so be sure to use it! Yours, that is.
Below is the chart of the Major Market Index. A little known index which is basically the twenty biggest publicly listed companies in the U.S. Remember what I said yesterday? The top 50 or so megacaps are driving the market. Longest run without a 1% intraday correction in half a decade. Last two times something similar happened we saw stocks crater. And what have I said for months? My models are still on sell (Or defensive if you foolishly choose to stay fully invested this cycle. Just an opinion not investing advice.) And that topping is a process and nothing in my work has proven to be anything other than expected topping action. Now, I'm not going to share my work but as I've said, I will share publicly consumable information to make you a better investor and assist you in managing your own finances.
Ok, the only time I've ever seen a chart like this is when a company has found the proverbial cure for cancer or topping. We all know the top twenty stocks are dull lethargic companies so they aren't cumulatively finding the cure for cancer. Of course, another explanation is we are experiencing hyper-inflation but gold isn't confirming that and neither is the dollar. So, I guess we can put the conspiracy theories analagous to the Weimar Republic on hold.
The moral of the story? If the market is going somewhere in a hurry without a breather, it's best to wait to see what the hurry is. Eventually, the circumstances will reveal themselves or a better opportunity to buy will emerge. Risk management/discipline are keys to long term investing success. Are we exactly done at this moment? Well, some of my short term models fell off of a cliff late last week. So, maybe we are and maybe we aren't. Maybe we'll float around for a month or three or maybe we'll start to see distribution after the close of books at the end of October. I don't know what tens of millions of investors are going to do tomorrow but we reached or will soon reach our target of 1360-1400 on the SPX and that means many shrewd traders are pulling in their horns. Enjoy the ride. We're going to Dow 36,000!
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