We are merely pointing out that market history teaches us that manias are unwound in a series of stages. Anything but linear. These above charts tell us that the initial movement to the bottom of these consolidation zones is one good bet. Who knows, maybe it's straight down from here, but we would not bet on it in terms of days or weeks. If we had to guess, the real bottom in this market is multiple quarters away.
Recent action has the earmarks of redemptions and forced margin call selling.
Additionally, we have been hearing of a hedge fund or two being forced to shut their doors by year end. You know the negatives. Potentially violent reactions. It seems it's starting to happen. It's not over yet, but the proverbial preannouncement season may also end a bit earlier than usual given the jump start out of the blocks.