We post this chart of Syneron Medical to illustrate the price chart attributes and how trend following techniques can be applied. Shares were purchased for our managed account February 9th based primarily on the observed daily and weekly chart price patterns.
In a manner similar to the stock markets of the 70's, this one exhibits narrowing breadth that has supported the indexes in a wide trading range throughout 2015. As markets progress under these narrowing conditions led by just a handful of large cap growth companies, the "structure' becomes more unstable,
Seems that is what most everyone is expecting. However, markets have an uncanny knack of NOT doing what is the perceived surefire cause and effect results from a connecting the dots exercise. I'm often reminded of the following Richard Russell quote “Most people have a hard time envisioning change, and they are almost incapable of envisioning major change.