If this looks like Niagara Falls, it's because it is like Niagara Falls. We have been warning since October of the severity of this downwave and took 99.9% of our personal capital to the sidelines long ago. Hopefully, our readers have done the same. If not, infinite pain. Sometimes investors are reluctant to bail out because they "don't want to lose their position" (or they believe in Malkiel). Well, if your position is bleeding like a stuck pig, why is it so attractive? Plus, you can always get back in - and probably at a better price.
Here's something else to think about: what if this formation, beginning in February, has been a massive double top to the entire bull market (since March 2009)?
The implications are cataclysmic. Please note that the long term Basing Point stop has been violated. We never rail at our readers - but this time our hair is on fire.
W.H.C. Bassetti
Edwards-Magee.com
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