Broadening
It has been discouraging, to say the least. The small caps have exploded 8% higher since Friday based on………..what?………the promise of yet another miracle cure? Covid ain’t the problem, folks. The economy is rotten to the core, but self-delusion is as popular as disco was in 1977. This is mass hypnosis gone berserk....
*****But something dawned on me about my beloved small caps. I’ve been so wrapped up in what happened between February 20 and March 23, and what has happened since then, that I failed to open my eyes to the bigger, broader picture. The pattern to watch didn’t start a few weeks ago. It started in early 2018! And it’s a monster.
It is plain to see now that the plunge that terminated on December 26, 2018 (I don’t need to look up these dates; they are burned into my cerebral cortex) was a key first portion of the pattern. It all makes sense now that so much time has passed. And what we’re struggling with now is the ascending trendline from March 23rd, which is the latest piece of this puzzle........MUCH MORE
Can you hear me now?
