Speculations on the pattern and Bill Gross

Posted on Apr 23, 2015 by in Letters

http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=4&dy=0&id=p22824069931&a=404779364

Here is a different way to look at the SPX -- a line chart which just connects closes with a line.  This almost looks like a triangle.  It can of course be contained within a rectangle, especially if candle shadows are included.  But the important thing is the coiling nature of the pattern -- getting tighter and tighter.  Foreshadowing fireworks.  Professionals sometimes buy option straddles in cases like this. Propulsive power is built up in patterns like this -- a confirmed breakout would carry price a minimum of 80 points.

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