3 replies to this topic

[atlasshrugged]

the fact the fed is going to wait for confirmation before doing anything tells me that odds favor the mkt turning down from here

[Cirrus]

I want to see the IWM trade above 80.10 to 80.20 before thinking about shorting en masse. Many of the major financials are sporting inverse H&S patterns on the daily chart and they're the weakest sector. Perhaps a sping of these patterns before upside momentum is exhausted near term. That should peg the IWM above those levels and take out some stops. My guess is the R2K underperformance has backe up that level (80.10) with stops. I'll resume shorting small caps and retail if this happens.

[atlasshrugged]

I want to see the IWM trade above 80.10 to 80.20 before thinking about shorting en masse. Many of the major financials are sporting inverse H&S patterns on the daily chart and they're the weakest sector. Perhaps a sping of these patterns before upside momentum is exhausted near term. That should peg the IWM above those levels and take out some stops. My guess is the R2K underperformance has backe up that level (80.10) with stops. I'll resume shorting small caps and retail if this happens.

cirrus, go back and look at the many times the spx and naz put in inverse head and shoulders from 2000 to 2002...they resume to the downside...I think the banks and financials and rut...are all exhibiting these patterns

[Cirrus]

Look at a daily chart of C over the past few years. Look how many IT bottoms were inverse H&S. Don't get me wrong--I think there's a good chance of a weaker market by Oct but I would think that they move these financials a little above the necklines for false BOs and then sell 'em.