Do you “SPY”

If your like most stock investors you often use the SPY ETF as an investing barometer. The reason for that is it holds the 500 Large Cap stocks with the highest liquidity in the market. It’s well known that the average annual return sits at 10% since it was created in JAN of 1993.

What you may be unfamiliar with is the fact that it is currently breaking out of a 3 year long technical chart pattern known as the “Cup with Handle”

The Cup with Handle is an extremely bullish chart pattern with a historical win rate of 95%. The average return after it breaks out is 54% This chart that I am sharing is a 3 year chart using Weekly Bars. These breakouts typically offer “4 Legs” At the end of each Leg there is a small pullback. We just completed the 1st Leg and are entering what could be the 2nd.

I’m not a gambling man, but I do believe that History repeats itself. And if History repeats itself here, may our “Cups runneth over”

Invest wisely, live charitably and be well

Brother Bill