Monthly Archives: November 2011

S&P 500 Working on a Potential Inverse Head and Shoulders Formation

A potential inverse head and shoulders chart pattern is currently under formation in S&P 500 after yesterday’s price action. If this pattern finally forms it will signal another rally, possibly to a 4-year high, but a few important obstacles must be cleared first. Share

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Price Action Lab Alert: Eight Consecutive Lower Closes In SPY is not a Significant Sample

Several analysts over the weekend made reference to the price pattern of 8 consecutive lower closes formed in SPY and based on that they are betting on a short-term recovery. Historically, the pattern has occurred only 5 times since this ETF started … Continue reading

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ETF Trends – Week of November 28, 2011

As of the close of Friday, November 25, 2011, there are only 3 changes in the ETF trend state table from the week before. As expected, the short-term trends that emerged were maintained and the changes regard only the medium and … Continue reading

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Dow 4,000? What Technical Analysis Says or Doesn’t Say About Such Possibility

Recently I read an analysis about the possibility of Dow dropping to 4,000 or even as low as 1,000. The claim was that technical analysis of long-term charts supports such a possibility. I argue here that it is not pure technical analysis that … Continue reading

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The Many Faces of Trading Expectancy

Some authors define trading profitability using the expected value or expectation, a.k.a expectancy. However, it would only suffice for them to say that a trading system, trading method, or even investment program, is profitable if the net profit/loss is positive, i.e. if it … Continue reading

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Does It Look Like June of 2008 All Over Again? Not Yet.

In many blogs and investment sites there is a talk about the stunning resemblance of the price action in S&P 500 index back in May-June of 2008 and just before the market collapse that followed, to the current price action pattern. I argue here … Continue reading

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