I wanted to share a couple of charts that have little to do with one another on this records-highs-are-everywhere day.
First up is Advanced Micro Devices. For many months, it looked like it was forming a reversal pattern, as it had done five prior times in its history. Instead, it broke above this pattern (green tint), tested it successfully a couple of times, and then – zoom – – a runaway stock. A moment of silence, please, for anyone who had shorted this. The Greater Fool Theory is in top gear now.
On a very different note, real estate continues to be vulnerable. The leveraged bullish instrument shown below broke its long-term trendline and did not even muster enough strength to tag the underside of the same. Instead, it appears to be double topping (red horizontal line) preparing for a new leg down. In other words, diminishing real estate equity valuations.
