Thursday, June 25, 2009

SPY up into Head and Shoulder into July

Speaking of the CPOD (Chicken Pick Of the Day),

Don't count your Head and Shoulders before they are hatched. This is a possible pattern formation, and the H&S is a strong one, but there were so many in the 2007/2008 debacle that just by alternation I dont expect them to work as well in the next downturn. Check out the time frame. This theory also fits with Molecool's idea of some chop and whipsaw in the near future, and also with his 6-25-09 "turn date", i.e. a turn up (but that is plus or minus 3 days, so keep on your toes). Check out ES on my links page to go to Molecool's Evil Speculator--the only EW tactician that is useful in real time (no I am not getting paid to say this).

So, if you want to be in the market during the expected small increase, but plenty of chop, consider a delta nuetral strategy (have as many shorts as longs) and pick them all by short term chart patterns. Try candlesticks...great for 2 to 4 days, using daily candles.

I doubt that I will have time for another round of 20 CPOD like I did last week, for Friday trading, you are on your own.....hey share the need to click any advertisements here...there are none. Share some intersting tickers. And check back on weekend.

1 comment:

  1. Hi Steve,

    We already had 3 + days. Tomorrow is Friday and not thursday like you said.


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