I’ve been harping on this megaphone pattern for quite a while now, but you’ve got to remember, there’s a reason why these megaphones are so important for predictions: They tend to occur at the major tops before a fall.

Think 1965, 1968, and again in 1972. Three tops to what’s clearly now a megaphone. What happened after that? Surely you remember 1974.

Now we’re in a bigger one – a megaphone pattern that takes a little longer for the highs to get to new highs and the lows get to new lows. But we’re in it, and have been since 2000… 2007… now 2019.. We’re building tension, raising the stakes with every turn. It’s something I’ve been covering often in the 5 Day Forecast.

So, what do you do? Well, you can ride things out a little longer; there’s always a chance we’ll get more tension, higher stakes (and a better time to cash out on your investment). But there’s always two scenarios: markets can go up and quickly as they can go down.

By the way, Adam O’Dell is the best trading expert I know at pinpointing these types of swings before they happen. His Green Zone Stocks service is light-years ahead of the rest on this kind of stuff: maximizing the wins and minimizing the losses, allowing wins to run longer and cut the losses shorter.

That’s how you beat it, but it’s not exactly easy.

Maybe the better question is, what do you do if you’re not Adam O’Dell? I talk a bit more about that in this week’s Friday Rant.

The content of our articles is based on what we’ve learned as financial journalists. We do not offer personalized investment advice: you should not base investment decisions solely on what you read here. It’s your money and your responsibility. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments such as futures, options, and currency trading carry large potential rewards but also large potential risk. Don’t trade in these markets with money you can’t afford to lose. Delray Publishing LLC expressly forbids its writers from having a financial interest in their own securities or commodities recommendations to readers.

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