A PATTERN THAT REPEATS TIME AND TIME AGAIN. LEARN!
As Egypt erupts into celebration over the resignation of President Mubarak, let's revisit a chart pattern that was colored, primped and groomed as a result of the conflict in Egypt. The chart below is from January 31st:
(click on chart below to enlarge)
USO (oil)
You see this type of pattern time and time again in the market. It's called the PME pattern or the Pre-Mature Ejaculation pattern. What is it? Well, look at the chart, do I have to say more?
Oil, more or less, had an accident in its pants as it was rounding 3rd base for homeplate. The participants in the oil market got so excited, worked up and hot over the Egyptian crisis that they didn't even get the chance to take their pants off, it was already over.
It happens all the time, and it's a great move to fade. All the volume and the sudden thrust up, as people just wait for their investment to pay off as a result of a crisis, event or play that is way too overly-telegraphed to ever prove profitable. The market never gives away its pot of gold that easily. A classic sell the news type pattern.
The PME pattern...never has complete and utter disappointment and embarrassment been this profitable.
