The conventional wisdom right now is we're in for a slow growth environment. The consumer is going to be de-leveraging for the foreseeable future, business investment is low and will be for some time and overall we'll be in the 1-2% growth range for the next few years. No one is talking about anything other than that.
So, that got me thinking -- When has the conventional wisdom every been right? Or more precisely, what is the contrary view to that concept right now?
Below are three charts of the SPYs, IWMs and DIAs. They are yearly charts. Notice that they are all head and shoulders patterns. The standard way to trade this pattern is to buy when prices cross the neckline. The standard measurement tool is for prices to rise from the neckline to a point that equals the distance from the top of the head to the neckline. Assuming that to be the case, we've got a rally coming.
Now -- we just had a rather historic head and shoulders breakdown a few weeks ago. So -- consider these charts.
Liveblogging World War II: May 19, 1943
21 minutes ago