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
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7 comments:

  1. txchick57June 30, 2009 at 5:58 PM

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

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  2. StewieJune 30, 2009 at 9:02 PM

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

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  3. AnonymousJuly 1, 2009 at 6:50 AM

    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

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  4. txchick57July 1, 2009 at 8:14 AM

    Took your CWTR trade. I like it.

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  5. StewieJuly 1, 2009 at 8:50 AM

    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.

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  6. StewieJuly 1, 2009 at 8:54 AM

    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

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  7. AnonymousJuly 1, 2009 at 1:30 PM

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

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