My friend Erik Swarts Market Anthropology) does some really great fractals and analog charts. While analogs are often criticized (deservedly) because the X and Y axes can be easily manipulated to illustrate any opinion under the sun, I find that certain extreme examples simply cannot be ignored.
The validity of fractal analysis comes from the fact that human behavior doesn’t much change from era to era, asset class to asset class. We are remarkably reliable, if not entirely predictable, when it comes to the fear – greed cycle.
In the case of the biotechnology sector, Swarts shows some eerie similarities between the recent price action and other blow-off tops from the recent past.
I’ll just post the charts themselves, you supply the opinions they provoke…