Tuesday, June 30, 2009

Be Ware Of Popular Patterns



Today i got several emails asking me what i thought of that Head And Shoulder Pattern taking shape on many index charts. I have only one thing to say and that's BE VERY SKEPTICAL WHEN EVERYONE SEES THE SAME PATTERN. Check out this post i did on my blog a few months ago where in mid APRIL many people were calling the top to the rally due an OBVIOUS rising wedge on many indexes: The market will rarely hand the majority what they looking for. Let's see if this time will be different, i got a hunch it won't but i will the charts be the ultimate decider!

I Titled the post:

A Very Popular Pattern

7 comments:

txchick57 said...

I look at that and see a "Pammy Cup" i.e., double cup and handle. Very bullish pattern. Pammy refers to Pamela Anderson btw.

Stewie said...

pam anderson bottom? hmmm, i like the sounds of that technical pattern! :-)

Anonymous said...

hi stewie,

would like to know your thoughts about short squeeze, how do you play it. do you look at short ratio and then good news will trigger it.
thanks
Bill

txchick57 said...

Took your CWTR trade. I like it.

Stewie said...

sweet txchick! i took a 5% gain at 6.46. My target is $7 if you have more patience than me. but i always like to book gains.

Stewie said...

hi bill, i do not "look" for a short squeeze per se. but if i do, i usually just get board even if the stock is already up a lot and ride the momentum wave. look at FUQI for example over the past 3 months. 13% short interest:

http://shortsqueeze.com/?symbol=fuqi&submit=Short+Quote%E2%84%A2

Anonymous said...

Pammy cup ...lol. Is that Tommy's 'head' in the middle ? rofl...

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