Chart of the Day: The Intensifying Vicious Race to 7,400

My suspicion about the GDP week appears to have been confirmed yesterday (PSEi jumped 1.96%).

If momentum carries on—which had been bolstered mainly by the routine serial and mechanical afternoon delight pumping and abetted by “marking the close”—the PSEi may experience one of the, or if not, even the most ferocious, GDP week since 2015.

History has rhymed, though. 

The vicious race to 7,400 should be an example. Present developments highlight the third instance since 2013.

And if one notices, the vehemence of the vertical low volume synchronized pumping has not only been repeated, it has become astonishingly climatic.

This can be seen in the number of trading days to accomplish almost the same run (2013: 35, 1Q 2016: 40 and Dec 2016 to date: 18) that has ostensibly been shortening. Yet, the more accurate measure should be the average return per day since the troughs. And the rate of which has strikingly been escalating (2013: .43%, 1Q 2016: .53% and Dec 2016 to date: .69%)

Vertical runups (BW-SSO) can be interpreted as signs of desperation. Though it may continue for awhile, history has shown us that such have been, and will most likely be short lived (Newton's Law)—if again 50 years of history will rhyme. 

Escalating speculations (powered by engineered pumps) are, in fact, signs of pricing discoordination intended to mask deepening imbalances

Enjoy the show!