Boon For Bonds
Patterns tend to reflect the underlying psychology of the market. That is, psychology is
what makes the pattern, patterns in and of themselves do not create psychology. Fake-out patterns like the Lizard tail, where an issue
sells off and reverses to gain back some of the losses, tell a story,
particularly at or near highs.
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With the second tail in a row, and likely selling to occur at
first when the markets open on Monday, further seeking of safe haven should
continue to push bonds higher. If this plays out, it was foretold by the
pattern.
Have a safe weekend!
Duke
P.S. For some excellent ideas on how to
approach the markets when they re-open, take a look at the
strategies of Kevin
Haggerty and Tony
Saliba in the lessons section.
P.P.S. If you are interesting in donating to a charity to help support the
families and victims of the tragedy in New York and Washington, please see Eddie
Kwong’s “Coming This Week” column