Comments on: Head & Shoulder Formation In Major Indexes http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html Freshly squeezed market commentary & analysis Sat, 21 Nov 2009 23:55:25 +0000 http://wordpress.org/?v=2.0.2 by: Babak http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50748 Fri, 17 Jul 2009 01:29:24 +0000 http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50748 Here's a <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=980774" rel="nofollow">study on H/S patterns</a> Here’s a study on H/S patterns

]]> by: Babak http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50352 Wed, 08 Jul 2009 22:16:28 +0000 http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50352 Here's a <a href="http://www.marketwatch.com/story/the-markets-head-and-shoulders-may-have-broken?siteid=" rel="nofollow">recent article</a> from Hulbert talking about the same H/S pattern with Peter Eliades who puts the target at 822 - right around the 820 range I mentioned. And here's <a href="http://online.barrons.com/article/SB124702532283910139.html#mod=rss_barrons_getting_technical">Michael Kahn's take</a>; ihe doesn't want to join the H/S bandwagon but it is bearish. Here’s a recent article from Hulbert talking about the same H/S pattern with Peter Eliades who puts the target at 822 - right around the 820 range I mentioned.

And here’s Michael Kahn’s take; ihe doesn’t want to join the H/S bandwagon but it is bearish.

]]> by: dacian http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50348 Wed, 08 Jul 2009 20:35:53 +0000 http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50348 It's true that everybody's looking at that H&#38;S but as you can see here everybody's calling for a possible bear trap as well. At the end of the day, stock market is about companies making profits. If you think stocks are cheap here, I invite you to buy strongly; I personally don't know in which parallel universe these companies are selling their products... It’s true that everybody’s looking at that H&S but as you can see here everybody’s calling for a possible bear trap as well. At the end of the day, stock market is about companies making profits. If you think stocks are cheap here, I invite you to buy strongly; I personally don’t know in which parallel universe these companies are selling their products…

]]> by: Guru http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50257 Wed, 08 Jul 2009 00:32:19 +0000 http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50257 Time horizon, don't forget to look at multiple time horizons. Babak drew the H S correctly but rather than dumping everything and heading for the hills, you should also take a look at the inverted H S bottom pattern that's been in the works since last October. This move down ... if it stops at around 800 and begins to reverse again .... will form my long-awaited right shoulder of that inverted H S. Rather than being a bad thing, this is a good thing because it could be the precursor of the completion of the Financial Crises Crash bottom, the end of the accumulation stage of the Market's life cycle and the start of the market's next mark-up phase (bull market) that could carry the Index to 1250 by the end of next year. Time horizon, don’t forget to look at multiple time horizons. Babak drew the H S correctly but rather than dumping everything and heading for the hills, you should also take a look at the inverted H S bottom pattern that’s been in the works since last October. This move down … if it stops at around 800 and begins to reverse again …. will form my long-awaited right shoulder of that inverted H S.

Rather than being a bad thing, this is a good thing because it could be the precursor of the completion of the Financial Crises Crash bottom, the end of the accumulation stage of the Market’s life cycle and the start of the market’s next mark-up phase (bull market) that could carry the Index to 1250 by the end of next year.

]]> by: GreenAB http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50251 Tue, 07 Jul 2009 18:43:53 +0000 http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50251 S&#38;P has an open gap around 813. so this would be a logical target once we lose major support. S&P has an open gap around 813.
so this would be a logical target once we lose major support.

]]> by: blues http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50249 Tue, 07 Jul 2009 18:22:27 +0000 http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50249 GreenAB, yes, I have the same view, if we break 885 then 875 would be nothing, but not sure what you mean buy 813 gap? You mean gap down 813?! I wish, but then that would be a super big gap which would trigger all the switches at the floor... and a huge crash day.. which I also would enjoy... :) GreenAB, yes, I have the same view, if we break 885 then 875 would be nothing, but not sure what you mean buy 813 gap? You mean gap down 813?! I wish, but then that would be a super big gap which would trigger all the switches at the floor… and a huge crash day.. which I also would enjoy… :)

]]> by: GreenAB http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50246 Tue, 07 Jul 2009 17:05:33 +0000 http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50246 read: SKS are the german initals for ShoulderHeadShoulder. sorry about that. read: SKS are the german initals for ShoulderHeadShoulder. sorry about that.

]]> by: GreenAB http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50245 Tue, 07 Jul 2009 17:03:19 +0000 http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50245 @blues, i have to disappoint you. i´m neither a bull nor a bear. i just commented on Babak´s chart who has the neckline precisely where it has to be (and not at the 880 level like so many others out there). so yesterday WAS a failure and we´re seeing another attempt today. which way it will turn? i got no idea. my gut tells me that if we break below 885 we´re straight on our way to 813 (gap) without stopping at the well tested 875 many bulls believe in. but as i´m writing the SKS is NOT condirmed YET. ;) @blues,

i have to disappoint you. i´m neither a bull nor a bear.

i just commented on Babak´s chart who has the neckline precisely where it has to be (and not at the 880 level like so many others out there).

so yesterday WAS a failure and we´re seeing another attempt today.

which way it will turn? i got no idea.

my gut tells me that if we break below 885 we´re straight on our way to 813 (gap) without stopping at the well tested 875 many bulls believe in.

but as i´m writing the SKS is NOT condirmed YET. ;)

]]> by: Dave http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50241 Tue, 07 Jul 2009 16:52:03 +0000 http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50241 @blues, I agree with you 100%. The "failure" calls were/are premature. I would love a true failure &#38; bear trap. From failed moves come fast moves. Regards, dave @blues,

I agree with you 100%. The “failure” calls were/are premature. I would love a true failure & bear trap. From failed moves come fast moves.

Regards,
dave

]]> by: blues http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50240 Tue, 07 Jul 2009 16:38:19 +0000 http://www.tradersnarrative.com/head-shoulder-formation-in-major-indexes-2727.html#comment-50240 GreenAB, I guess you are a bulltard who is long the market? Yes I do agree that TOO MANY TA is looking at this pattern and this H&#38;S pattern is too perfect and that even the volume confirm to a text book H&#38;S which will most likely to make it fail... BUT yesterday was not a failure. We have not even break the neck line yet. Look at today, we already making another attempted to reverse all the reversal candle from yesterday already. For me, I would think that we need to break the neck line hard and then chop down there sideway for a few day and then pop back above the neck line. THAT WOULD BE A FAILURE. And THAT WOULD BE A BIG BEAR TRAP which would catapult the market higher and fast. GreenAB, I guess you are a bulltard who is long the market? Yes I do agree that TOO MANY TA is looking at this pattern and this H&S pattern is too perfect and that even the volume confirm to a text book H&S which will most likely to make it fail… BUT yesterday was not a failure. We have not even break the neck line yet. Look at today, we already making another attempted to reverse all the reversal candle from yesterday already.

For me, I would think that we need to break the neck line hard and then chop down there sideway for a few day and then pop back above the neck line. THAT WOULD BE A FAILURE. And THAT WOULD BE A BIG BEAR TRAP which would catapult the market higher and fast.

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