One of these days, I’m going to trust my own drawings more.
This morning, I woke up to yet another annoying rally (and, yes, that’s a word I use a lot these days). Based on absolutely nothing, the market was pushing higher and higher, and it actually spiked after the opening bell.
I noticed, however, it was approaching a trendline. If I had rock-solid faith in these things, I would have concluded: “Great, short everything that moves.” But I didn’t. And here’s what happened:
Yep, it tagged that line and immediately fell to pieces. What’s remarkable to me is that this isn’t some pipsqueak trendline that goes back 30 minutes. It goes back to last Christmas! (when that piece ‘o shit Mnuchin called his boys and ordered them to cease the market’s drop). And yet, this morning, it banged its head on this now-broken trendline and reversed without apology. Amazing.