Meta Strategy Trading Portfolio – Probability Map Update.

Hitting the Ceiling

Stocks currently encounter strong resistance in the form of an ultra-long-term bull-market channel since 2007.

Momentum looks unstoppable, but, let’s face it, the current rally’s ascent is unsustainable at a 32% gain in four months.

I would be surprised, if the stretched, increasingly speculative rally in equities didn’t show some kind of reaction around this long-term ceiling, even if it’s only temporary.

I construct a beautifully symmetrical, hypothetical scenario for the coming months – based on similar historical patterns.