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Eiffel tower patterns can be very important to your portfolio construction &
management because, when you experience the left side of the tower, you often experience the right side as well which often results in declines of as much as 50% from the peak. Currently it would appear that three specific assets could well be forming such patterns.
So says Chris Kimble (http://blog.kimblechartingsolutions.com) in edited excerpts from his original post* entitled S&P 500 forming its third Eiffel tower pattern in 15-Years?
[The following article is presented by Lorimer Wilson, editor of www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Kimble goes on to say in further edited excerpts:
As can be seen in the charts below, at the time when most investors were in love with Gold & Apple, I shared (see post here) and (see post here) that Eiffel tower patterns looked to be forming in these white hot assets and, not surprisingly, they each subsequently declined over 30% in value.
CLICK ON CHART TO ENLARGE
As can be seen in the chart above, the S&P 500 looks to have formed two Eiffel tower patterns since the mid-1990’s…100% rallies followed by 50% declines.
The best way for SPY, XLV & XLY to break from these Eiffel tower patterns is to continue to break overhead resistance. Concern for these assets would come into play in support is taken out.
Please feel free to express your opinion by posting a comment below…
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
*http://blog.kimblechartingsolutions.com/2013/06/sp-500-forming-its-third-eiffel-tower-pattern-in-15-years/
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