THE TWO CHARTS OF THE S&P 500 THAT BULLS WANT TO RUN AWAY FROM
Unfortunately, it is impossible to run away from indisputable truth. That truth, in the markets, comes in the form of price. Price is the ultimate truth teller in this circus of lies. There is no clearer form of communication with investors. The great dilemma is that investors don't feel the need to learn the language of price. Instead choosing to bury themselves in data that is seemingly more intellectual and forthcoming than price, but fails to produce results.
One can pontificate with overly-intellectualized jargon. It surely carries well at cocktail parties, as well as industry events. If you do it well enough it may lead to a book deal or a spot in the rotation at CNBC. This is, however, an industry that is bottom line based. None of us are here, as far as I know, to engage in pro-bono debate simply for the sake of debate. It is my hope that the overly-intellectualized jargon that is so commonplace on Wall Street actually serves as a means to an end. That end should be profit. It is the only reason any of us do this. That seems to get lost in the vast clouds of noise that overwhelms so many investors that can never get past...the noise.
Below you will find two charts. The first chart is going to demonstrate what I call a recognition. The second chart is going to demonstrate what that recognition means for the market both in terms of upside and downside going forward.
All truth. No jargon. With the sole purpose of enhancing portfolio performance.
click chart to enlarge
S&P 500 Daily
S&P 500 2 day chart
