Once more naive chartists fell victims of their own arrogance. Although surrounded by robots, they thought this time around their flagship pattern of head and shoulders would compensate for a long streak of failures during this and last year. “No way” the robots said and the massacre began on June 5 and ended a few days ago. More incidents will follow with victims naive classical chartists. The robots enjoy ripping technical analysis apart. It’s their bread and butter.
I want to emphasize that I am not attacking anyone in particular but only naive chart analysis. The head and shoulders flagship pattern in IWM gave hopes to long suffering chartist for some gains. But even the first target objective was not met. The robots took the market down to make chartist chase it and when they thought there was enough meat, the massacre began. The neckline was broken to the upside and the robots rallied the market about $4 more to finish their job and deliver to their creators. The creators are now in their luxury yachts enjoying their life with the money of the naive chartists. No, this is not a joke. I have been there and I have seen that this is how it works. If you do not believe me it is fine. You can just go ahead and continue risking your money on naive chart patterns. Actually, if you do not like this blog because it is against naive charting, you are welcome to click here to go to Google and find something else.
Disclosure: no relevant position at the time of this post.