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.

Again, Parabolic Advances have NEVER ended well … 

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 …

Sir Issac Newton and $AAPL Fell From the Tree

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.

Author: BART

BART is a CMT and an expert a "advanced" pattern recognition used w/in the intermarket analysis discipline. He's also an accomplished Business Development Executive providing solutions to a myriad of business markets. View all posts by BART