Bobby,
>>>> Hang Seng had a big white candle up the to uppertrendline of the symetrical triangle thats been developing since the july top, a breakout in todays trade should be good for nasdaq, considering they correlate pretty closely. <<<<
Bobby, after you brought my attention to the Heng Hseng, that type of WHITE CANDLE is not the most bullish of signs. It is actually a little bearish. It was a white candle with a slight upper shadow and no lower shadow.
Take a look at the following dates which had similar formation:
12/9
12/30
1/10
2/11
2/24 +
3/6
3/27
4/7/
4/28
5/31 +
6/2 +
7/5 +
7/10 +
7/26
8/7
8/15
Of those 16 examples 11 of those dates were followed by some sort of a selloff within about 3 days and sometimes immediately. The dates with (+) are the dates where either a rally followed or flatness. So I wouldnt be overly bullish with that candle. Im not saying that its a reversal signal either, just that its really not a bullish candle.
Im not saying that the HENG HSENG cant rally but it would not be due to that type of candle, and Im not saying that such candle is strong enough to be a reversal signal. So use some other reasons to support a rise in the HSI like your beanie, which I do respect, but that type of candle wont do. As it was explained to me by a Chinese old-timer, my grand uncle, who used it in the rice/spice trade, those formations actually have a similar effect of an INVERTED HAMMER, but without the intensity of an INVERTED HAMMER. No, its not in the text books. He said very poeticly, that the small upper shadow without lower shadow over-rides the whiteness of the candle. Its hard translating from Chinese to English, since my translations wasnt a bit poetic, but thats the gist.
Again, Im not arguing that the Heng Hseng will move up, I just dont know since Im getting mixed signals.
If the Heng Hseng does move up then I would agree that would give upward pressure to the NAZ. |
