Wrapping Up The Week With A Hangman

April 24th, 2009

Let’s face it bearz, this week started off great – practically ideal – but really ended on a sour note. When I look at the last two weeks of trading, all we have done really is go up and down in a very small and defined window – between 830 and 875 on the S&P. Of course members have had some great short trades – including WMT for 9% and BCR for 15% – but they have been the few standouts. The rest are resisting the fall – for now at least.

 

Now, if we all take a step back and really look at the charts, all this is just telling us that neither the bullz nor the bearz are strong enough to push the market – i.e. sideways trading for the past 2 weeks. Now, as for the hangman pattern on the weekly chart below. This is a text book example of what happens before an intermediate top. The only thing we need to worry about with this type of pattern is that we need a close under the “head” or lower than we closed today for next week. If we get this then the pattern is confirmed and we should be headed down very fast. If not – and we close higher next week – then we may be in for some more sideways action. The member’s only video will go out Sunday with next weeks strategy and new Long trades coming up!

 

hangman

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