Parabolic Moves have NEVER ended well …
Below you’ll find charts showing the parabolic blow-off of the NASDAQ, CTX (housing), LEH (banking/investments), JEC (oil services), Green Mountain Coffee (GMCR) and Apple (right before it lost 50% of it’s price – remember?)
The reason I post these charts is because when I look at IBB, NKE, XLV, etc I see the SAME PATTERN.
here’s the physics:
once velocity hit 8 m/s and around 2.5 seconds into it IT COULD NOT GO ANY HIGHER AND THE VELOCITY COLLAPSED. Folks, at a certain point the lack of liquidity and the parabolic nature of anything will prove Sir Isaac Newton correct …
so, perhaps we are at 3-4/ms at time 3 … but soon, in the near future these stocks/indices/interest rates will hit 8 m/s and 2.5 seconds and then the drop will be vicious.