Wednesday, May 13, 2020

Equities Chartology: Uh Oh, We May Be Seeing A Palais des Beaux-Arts de Lille Set-up In the The Dow Jones Industrials

From FinViz, A snapshot of the last year's action:


Which to the amateur eye may bear a superficial resemblance to the 28 step Three Peaks and a Domed House pattern:

But which is actually closer in structure to the Palais des Beaux-Arts de Lille:

File:Lille palais des beaux arts.jpg

And don't even get me started on a ridiculously complicated les toits du château de Chambord pattern.
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On a more serious note, the last time we saw the slightly-head-and-shoulders Vive Le Résistance! set-up was December 7, 2018, after the long decline from October 3 that year but still 2 1/2 weeks from the Christmas Eve bottom:
Past performance is no guarantee of future results and all but for some reason I'm getting a little nervous.
On the other hand, using a more fundamental approach:
Also, watch the commercial hedgers positioning (lower panel in DJIA chart) in the COT reports.
Over time they have to win or the game ends.
One of the few lessons of the COT that you can take to the bank.