This chart gives a pretty fascinating big picture view of the Canadian stock market over the past 10 years as we work our way through this generation’s (debt-created) secular bear. The fate of the global economy is now reflected in the trajectory and scale of that far right shoulder. Fascinating stuff to watch human behavior generate historical patterns once more. Those who refuse to see are unfortunately destined to pay heavily again.
Source: Cory Venable, CMT, Venable Park Investment Counsel Inc.
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SELL! SELL! SELL!
i love charts but have most often found them to be more reflective than predictive. Cory may be bang on here with his interpretation but one could just as easily compare the right shoulder, higher highs and higher lows to the left shoulder and say we are going to get a near term break to the upside take out the resistance and test the top. We can pretty much make the charts suit our beliefs but the market may not agree. I have the scars.
I agree, short the crap out of everything in the fall.
Michael you may find the first para of my commentary useful in gauging what my beliefs are re: patterns…also in the commentary note that unless the neckline is broken the pattern is not confirmed ergo the projected target is removed.
Ps. The higher highs and higher lows are occurring with greater volume on the down days & days of little change versus up days which is negative as it suggests distribution rather than accumulation. Cheers. C