Wednesday, July 15, 2009

Possible H + S pattern

We still got a H + S pattern albeit a very unusual one. For lack of a better word, a 'bowtie'.
We are potentially mirroring the move up, just in reverse with a broadening wedge pattern. Whereas the activity from May was a tightening wedge and the head being the failed breakout pattern.

Although the levels are all over the place, conceptually this is a pretty complete pattern. IWM, SPY, DIA, and even QQQQ to a certain extent exhibiting bowties.

1 comment:

Aaron said...

with this rapid rise the past couple days. you think this coincides with CIT? remember end of June somebody borrowing 7% fed funds.

could this have been a setup? the markets with GS/ Intel BS and calculated CIT wipedown of common to kill market and save USD??? argument can be made that a bailout of CIT could of been made a week ago, but was market too weak to handle and not enough money made from shorts then???

July 11 - GLD sucks

stopped out of GLD yesterday for -25%.  Holding off on reentry and maybe will enter if we drop another level. SPY on the other hand is crus...