A case can be made for a 100+ year triangle is complete and inflation, while pulling back now, has begun a bull market? Yes, I know that sounds crazy .. but, either way, would hate to see a close above the that upper down sloping trend line …
US Inflation Rate – March 06, 2023
Well, that is a chart I have not seen before, and your comments appear to be
right on the mark. Thank you.
Thanks Bart. Great analogy and forward looking information. Now I am confused! How do we use this information. Going higher or lower on rates? Really miss you in the Topgun format!
GREAT to hear from you and stoked that you signed up for the blog! 🙂 Honestly, we really can’t use this information “tactically trading” but it is a big picture look of the environment we are facing. A triangle has 5 legs labeled a-b-c-d-e. As discussed, my EWT count is like my golf game so take w/ a grain of salt BUT either way, that upper trend line looms large. If we open/close above it – it will be the first time in 100+ years and its not too much of a stretch to surmise that if inflation takes off then rates “should” follow higher to try and contain it … still LONG TBT. Imagine taking it into the middle / end of 2024. Trust this helps. Bart
Thanks for your explanation. You Have made your graph useful. Why can not trading be simple? But when Vix is 18 or lower and sell when Vix 25 or higher.