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This morning the parent of American Airlines filed for bankruptcy protection (See article here). Did the “Power of the Pattern” know in 2007 AMR would declare bankruptcy in 2011? NO WAY!
The patterns did reflect that danger was ahead for AMR though! I wanted to share this example in case you would ever see such a “confluence of negative patterns” in the future. This example is a reflection of how powerful certain patterns can be and how important it is to see these patterns and why harvesting values at highs can be beneficial to overall portfolio values.
