It’s a pretty quiet morning, except for yet another rumor about some kind of OPEC agreement (which, again, was dismissed). Glancing at small-cap equities, it’s startling how swiftly they undid the damage from two Fridays ago (tinted below):
Of more interest to me is the somewhat larger picture. Although the parallel is far from perfect, I’ve been keeping an eye on the similarities exhibited below.
The core difference this time is in the strength in the rightmost portion of the pattern (in magenta). This, coupled with the fact that the famously weak September is turning out to be loaded with lifetime highs in equity prices, leads me to think that this analog might be a total dud, and once Ms. Status Quo is elected POTUS, we’ll simply continue to drift higher in perpetuity, floating on CB fumes and an ever-richer oligarchy.
