|

Manipulating the Megaphone

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.

Author

Harry S. Dent, MBA

Harry S. Dent, MBA

Dent Research

Harry S. Dent Jr. studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of his chosen profession that he turned his back on it.

More from Harry S. Dent, MBA
Share:

Editor's Picks

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans. 

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.