I can't recall a time when we've had the exact same pattern play out so many times in a row; and when the markets reverse the move is in such straight up fashion. In the past 2 months alone, we appear to be working on reversal #3... the first two I've highlighted:
- In mid August, the reversal brought on a just under 6% move in 4 sessions
- In early September, the reversal brought on a just over 5% move in 5 sessions (and that move continued to blossom into a 8.5% gain in 10 sessions)
In and of themselves the raw % gains are not spectacular but considering each time the market was correcting (in shallow fashion) and to be followed immediately with a spike rather than any sort of consolidation period is the remarkable part. There is no resting in this market - the shallow correction is immediately followed by rapid fire ascents.
Is this the 3rd such occurrence in just 60 days? Is it really just that easy? I don't know but until a pattern is broken, the denizens of Wall Street will continue to play it. So I won't be betting against it until bears show an ounce of moxie - by going against pattern you will only be correct one time. And wrong each other time. We are in day 2 of this reversal and the interesting thing is if this continues through tomorrow, days 4 and 5 are chock full of market moving data. And over S&P 1080 is yet another double top breakout possibility - the last few of which we've made a lot of money in a short period of time as computers rush in to buy on this technical condition.
Seems too obvious to keep working, but obvious has been the new normal.