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Inverted Head & Shoulders Formation: IBKR at Trader’s Narrative

Interactive Brokers Group (IBKR) went public a few months ago with a lot of buzz. Most of the attention was on the Dutch auction process they had chosen to go with, instead of the regular Wall St. investment bank route.

I’m not sure whether it was due to the process they chose, or the fact that the market got lethargic right when they debuted but the IPO sputtered.

A lot of people, had high hopes for IB but it ended up a disappointment. I even put in an offer but it didn’t get accepted because I was too stingy.

I took another look and noticed that it has carved out a fair head and shoulders pattern on the daily chart:

IBKR head shoulders formation

With today’s rumour of Warren Buffet’s involvement in Bear Stearns (BSC) the whole financial sector got a shot in the arm. I’m not sure if the rumour is true or not. There have been quite a few floating about.

In any case, I wouldn’t be surprised. BSC has all the hallmarks of a classic Buffet investment: beaten down sector, temporary dislocation, high barriers to entry, valuable name brand, loads of value, and loads of cash flow.

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2 Responses to “Inverted Head & Shoulders Formation: IBKR”  

  1. 1 Lozfer

    I dunno, the neckline doesn’t seem to be too clean.

  2. 2 Happy Hedger

    Don’t you just love charts? It’s cool that an image can interpret an intangible trading environment. If you’re like me and use these analytical “bells and whistles” daily – I highly recommend PTI ProDirect ( - I’ve been using this system for several months now and I gotta say that not only do the rates work for me (lower than OptionsXpress) but the Trader WorkStation interface (just like IB) has the best tools for traders.

    Love the blog - Cheers!

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