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October 19, 2014

Stocks to Rally and then Tumble

Wednesday's letter mentioned a bit of discomfort I carried in our bearish equity framework. The rocket higher by equities into the end of the week did nothing to ease that wariness, and as usual, I react to such suspicions with hours of chart-gazing. One angle on this market has caused me to at least temporarily close my short. Let's first have a look at a bit of history ...

 

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