News Events Provide the Excuse for Predictive Technical Patterns

World and national events always seem to emerge at the right time to explain what the technical patterns on the charts are telling us. I have said that the Score reading in early December foretold of an upcoming down move. My action to sell calls in early December that expired worthless on January 20th were a no-brainer. Yet, although it has dropped 10 points from it’s December high, my Score reading can and should drop another 30 points to get down into corrective territory. I do not know what the event will be that will take place that will put the market into a decline, but the charts are telling me that it will happen. In AIM accounts, I have been selling at whatever price levels the formulas let me, and will continue to do so, accumulating more cash to put to work near the bottom of the next down turn. As I like to say, “I have never lost any money selling at a profit.”