Thursday 8 May 2008

When two worlds collide

A faithful reader (well, actually a friend that is questioning my sanity) has asked whether the “abandoned baby” is stronger than the “inverted bat”. Since they are both very powerful trends that move in opposite directions, anticipating the outcome is crucial to the direction of the market.

 

If the two trends attempt to reinforce themselves at the same time, then we may end up with the “abandoned bat” or, much worse, the “inverted baby”. Otherwise, the bat wins every time. Have you ever tried to fight a baby?

 

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