Clemenza: That Sonny’s runnin’ wild. He’s thinking of going to the mattresses already. Sonny: No, no, no! No more! Not this time, consiglieri. No more meetings, no more discussions, no more Sollozzo tricks. You give ’em one message: I want Sollozzo. If not, it’s all-out war: we go to the mattresses.

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Hi all, hope you all had a great summer. The drop in sterling has been a great run. That and my short on Bank of Ireland have made my summer sweet.

This will be very short. Below you will see what is called a ‘Megaphone Pattern’. It started in April of 1987. That’s nearly 30 years ago. It has now just about completed. The last time it was hit was on February 2000 and lead to a drop of 45%.

Within this is a symmetrical triangle. It was hit in September of 2007 and lead to a drop of 57%.

These 2 formations have now been hit again and are not breaking through to invalidate them. Projected they have maximum targets of 2230 and 2170.

As I write this the S&P is 2125. Based in this I expect 1820 (14.35% drop) and then 1570(26% drop). The really scary thing is that the ultimate conclusion of the move is 500 which is a 76% drop.

Its all out war now and time to go to the mattresses. The next 6 months will be interesting!! , regards, Pearse.

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bloomberg chart factory out c1

 

 

 

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