- Bear flags don’t have to break down and, in fact, the more obvious they are, the less likely they are to do so. Everybody sees it.
- And the longer they take to break down, the less likely they are to do so. I would be more confident in my prior call had it broken down sooner. The longer it hangs there, the more time people have to pile in short on the obvious bear wedge.
- Looking at a wide array of “reopening stocks,” leads me to conclude that many of them are going to rally, and that should put some bullish wind in the sails on this one.
So, I’m going to be bold here and call for a rally instead. I am oing to make a new category (“Cancelled“) for calls like the prior one that I walked away from before anything important happened against the original call.
I now call for a rally to the orange box: