History Repeats Itself (by Mark)

 

Hi fellow Slopers!  My name is Mark and I post over at BostonWealth. A little about myself since this is my first post here.  I was an equipment maintenance technician for a semiconductor manufacturing plant in Austin Texas for 20 years. I watched the US industry die a slow death as workers got laid off, benefits cut, and jobs move overseas to Malaysia and China. My department closed. Jobs and wages are scarce. So I studied stock trading. It's been fun and challenging, but I would gladly go back to fixing those noisy machines if the jobs and wages came back. Til then I raise my cup to say cheers and happy trading all! 

They say history repeats itself, but many disagree especially when it comes to the stock market. But let me show you this chart and then you be the judge. I super-imposed the recent March rally to present onto the beginning stages of the 2002 to 2007 rally and came up with amazing similarities. The time and amplitude had to be adjusted a little, but the pattern shapes can't be denied. Elliot wavers believe the markets move in non-random patterns and can be predicted to some extent since human sentiment consists of predictable patterns of greed and fear. So what can we deduce from this chart? Well if history continues to repeat itself we have a short drop, then a monster move up followed by months of consolidation. Maybe I won't buy that strangle when we get there after all. Feel free to make the chart viral - I could use the traffic :-) Good luck traders!