You can accuse me of employing clustering illusion (looking for patterns) but the charts above appears to have some resemblance.
Not only do they share similarities in the undulations of price actions, they share almost the same timeframe.
The first chart actually represents the PSEi which includes today’s marvelous 1.33% close. It bottomed in the third week of January 2016 then made a parabolic run which has been in progress.
The second (lower) chart is actually the Shanghai index, which had a temporary bottom in February 2015, then made a stunning almost ceaseless run.
The Shanghai index peaked in mid-June 2015.
The difference has been that from the lows, the Shanghai index stormed by 68% as against the Phisix at 27.33%.
Yet should the Phisix maintain current pace of increases, we’d hit the rate of return of the Shanghai index at 60%+ or 9,750 by the end of the year.
Nevertheless, here is the bigger picture of the two over the same period.
The upper left rectangle of the SSE represents the portion of the picture clipped and shown above.
Meanwhile the sliced version of PSEi’s equivalent also in the red rightmost rectangle above.
Yet previous price actions showed of massive reversions to the mean.
For the PSEi, could this time is different?
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