Mystery Chart 01-15-2019

JC Parets
January 15, 2019

One of my favorite exercises in our process is the use of "mystery charts." Essentially, we take out the x and y-axes and and all labels to eliminate any biases. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. It can even be inverted.

The point here is to not guess what it actually is (though most of you will try), but instead to think about what you would do. Buy, Sell, or Do Nothing?

From where I'm sitting this chart looks to be attempting to stabilize within a long-term downtrend. Either prices are going to continue to correct through time as the 200-day moving average flattens out, or this recent strength resolves lower and makes new lows. Given that perspective, a neutral / bearish approach seems best until we see further evidence of a bottom.

Click on chart to enlarge view.

I'm going to make this a more regular exercise on the blog. Not only does it give us an opportunity to interact with you all more, but selfishly it provides perspective on other smart people's "less biased" views of a chart that I think is important right now.

So what would you do? Tweet us @allstarchartsIN or email bruni@allstarcharts.com and check back in Thursday for the big reveal.

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