Losses Mount for Russell 2000 Head and Shoulders Traders

In the era of social media, it is unlikely that anyone can profit from a widely talked pattern, like the head and shoulders in Russell 2000 and in its popular ETF, IWM. If you are not sure of what is happening, you are invited to read this article.

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The Price Action Lab Report – Monday, October 27, 2014 [Premium]

The Price Action Lab Report includes a market recap and premium analysis and it is delivered daily before the market open. The premium analysis focuses on high probability setups in ETFs and S&P 500 stocks. Click here for more details.

Market Recap – October 24, 2014

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A Significant Weekly Gain in S&P 500

The S&P 500 rose 4.12% this week, a gain that has occurred 84 times in the last 2,860 weeks since January of 1960, or with a frequency of 2.94% in the last 54 years. Since the 2009 bottom, weekly changes of more than +4% after corrections have signaled a continuation of the uptrend. With one exception, which is an important one.

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The Price Action Report – Friday, October 24, 2014 [Premium]

The Price Action Lab Report includes a market recap and premium analysis and it is delivered daily before the market open. The premium analysis focuses on high probability setups in ETFs and S&P 500 stocks. Click here for more details.

Market Recap – October 23, 2014

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That Was Not a Correction But a Reversion to the Mean

The recent drop in stock prices was a normal reversion to the mean, as it is evident from statistics. On the other hand, the 2010, 2011 and 2012 drops were something more than a reversion to the mean, possibly due to the fact that there was more uncertainty then about rates. Given the statistics and also the expectations about rates, only a black swan can prevent the market from making new highs at this point.

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The Price Action Lab Report – Thursday, October 23, 2014 [Premium]

The Price Action Lab Report includes a market recap and premium analysis and it is delivered daily before the market open. The premium analysis focuses on high probability setups in ETFs and S&P 500 stocks. Click here for more details.

Market Recap – October 22, 2014

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A Lesson For the Bears From 2007

Bears almost never get a top where they want it. During 2007, the S&P 500 fell below its 200-day moving average and then rose above it three times before forming a top and in the meantime it also made new highs squeezing shorts hard.

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