Chart: The XMI And Incredible Price Path Coordination In 2011 And 2012
Below is a daily action chart of the Major Market Composite Index, the XMI. It covers the period of July 2010 through July 2012. The chart includes a rather awesome econometric "price vector tent" that has occurred in the price data. You can see this mathematical "vector tent" by connecting key correlating price-time points discerned for 2011 and 2012.
For those analysts who may be less math literate and aren't sure what this means, let's just say that, basically, the chart is illustrating and depicting very significant, and in fact quite incredible, price path coordination existing within the XMI for 2012 from 2011.
For those analysts who often question that "history repeats itself" in stock market, this illustration offers a great example of a powerful "echo price tent" located in the XMI data that may be very interesting, educational, and very challenging to this preconception ...
And for those trader's who are presently wondering whether or not to "Sell in May and Go Away" in 2012, especially in the wake of Thursday's and Friday's strong market sell-off following what was apparently relatively good price action earlier in the week, and a possible price level pivot now potentially in formation, this chart may be equally as useful, considerable, educational, and ponderable.
I, for one, do not like to "discount the weights of history and price vector coordination" in making my market forecast assessments. Looking at this past year's incredible coordination, it becomes even increasingly difficult for me to do so at present.
So, in your consideration of all the seemingly good fundamental reasons for why or why not you may want to consider adjusting your market risk exposure levels going forward into May 2012 (there are many discussions on this matter going on this year), you may also want to be aware of this awesome, and so far definitive, coordinate "price vector tent" that has occurred in the Major Market this year and last... and which continues to mathematically exist and be further confirmed by this past week's market action.
I would want to be made aware of it, regardless of any of my other market considerations and possibly held orientations.
Disclosure: I am short USO. I have no positions in any stocks mentioned, but may initiate a short position in SPY over the next 72 hours.
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Disclosure: I am short SPY.