Courtesy of Doug Short
Chris comments: Multiple support points look to have formed at (1) in the chart above and recently the Dollar has broken above a falling channel that has been in place since the first of the year at (2).
In my opinion, Risk isn’t all about a declining market. When it comes to portfolio construction risk is all about the number of assets you own that could decline together! With so many markets acting the same these days (highly correlated), risks at present are much higher than normal. Great escape time? (See my May 5th post here.)
Support has not broken in the top 6-pack above, yet the “Power of the Pattern” does suggest that the odds are better than 50/50, that support will be taken out, due to the “rising wedge patterns” and the breakout in the U.S. Dollar. Risk management is very important right now!
Footnote from dshort: Check out Chris’s clever illustration of the title on his blog.
For the most up-to-date Kimble analysis, check out Chris’s blog: Kimble Charting Solutions.
