Just a quick post as it is fathers day in the UK and I will hopefully have a bottle of 15 year old Dorado Rum to enjoy later after lunch 🙂

I thought it was a good time to review Bob Farrell’s 10 rules, many of which (see a few of them below) seem very pertinent today. Full list in the link.

Markets tend to return to the mean over time.

There are no new eras – excesses are never permanent.

Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways.

Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names. (Think FAANGS!)

http://stockcharts.com/school/doku.php?id=chart_school:trading_strategies:bob_farrell_10_rules

We really do not know when it will happen and whether it will it be a 1987 style correction or a series of drops as we had last week with the SM grinding lower, I guess we will have to wait and see. When it does happen no doubt miners will be hit as well, but once the dust settles we could be off to the races.

We have been waiting a long time for this change, but maybe the time is near and don’t forget it is darkest before dawn.