Thanks for the links, Poet, good explanation of H&S. Too bad it is on QCOM <g> The Naz has displayed several H&S formations over the last three months
finance.yahoo.com^IXIC&d=3m
CTXS is a possible short, but I would worry about the compression on the bollinger bands, it could break either way.
I see an explosive relief rally following the FOMC, and may buy it before going short when it runs out.
About playing the down side, yes, it's hard to go against the long term market trend. But one thing to remember is that those of us who made a lot of money on G&Ks made it when they were, in essence, value stocks rather than overvalued. I was in QCOM, for example, when it was (in retrospect) at single-digits forward p/e. Same with AOL. In a rational market we would have had 3-baggers, not 10+ baggers. I didn't get into CSCO, JDSU, and others until they were well into 50+ p/e's, but with the mania it didn't matter. Today it matters. Tomorrow, maybe it won't matter again.
This chart from Sept 99 really spooked me about how the Naz has been out-running earnings, and it is not even as bad as it is today, even with the pullback.
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