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Linda Raschke, founder at LBR Asset Management, observes that the Peso spent 7 months consolidating sideways before experiencing a sharp shakeout in mid-June.
She highlights that such market behavior, featuring a final, notable move after a prolonged period of stability, is something she appreciates.
Raschke previously identified a possible Sell Short day when big caps faced distribution and a rate of change divergence appeared in the market, according to her earlier analysis. In a separate observation, she noted that 109 listed shares hit new all-time highs while 117 reached year-to-date lows, advising caution on the prevailing momentum as reported at the time. These points add context to her current focus on price behavior after extended consolidation phases.