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History Repeating Itself

Recs

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August 04, 2010 – Comments (3) | RELATED TICKERS: SPY

Strange how the market tends to repeat itself in a similar fashion time and time again. In this case, one doesn't have to look back any further than earlier this year to see how the market is making a similar pattern to the inverse head & shoulders formation (IH&S) that we saw toward the beginning of the year.

Here's the S&P Now:

Here's the S&P Then:

The crazy thing is, if this pattern is to play out similarly to the one we saw in January/February, we could be looking at new highs before the end of the year. With the mid-term elections rolling around, and the incumbents looking at getting taken to the woodshed, there definitely could be some incentive to push this market higher. One thing is for sure, and that is the bearish tones that I exhibited for the past couple of months have been put on the side-burner for now.

3 Comments – Post Your Own

#1) On August 04, 2010 at 11:20 AM, Dow3000 (< 20) wrote:

There is no question that the feds are doing their best to prop up this market going into elections.  However, the are not going to be able to make it that long...the economy is in a full out nose dive now.

 

http://www.zerohedge.com/article/gmi-describes-future-recession-ongoing-depression-must-read-report

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#2) On August 04, 2010 at 12:06 PM, davejh23 (< 20) wrote:

"One thing is for sure, and that is the bearish tones that I exhibited for the past couple of months have been put on the side-burner for now."

I've seen a lot of similar comments recently...more than at any other time during the last year.  Many bears are giving up...short term, everyone is calling for the market to climb higher.  Most have been wrong over the last year+, so I guess the market is set to tank...

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#3) On August 04, 2010 at 12:21 PM, dragonLZ (99.59) wrote:

davejh23, I think your most accurate "prediction" was back in June when you said something like: "Your best bet is to do the opposite of what I say" (from here).

Who started buying when you said SELL is probably very thankful to you right now...

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