Good morning Po,
Yes I read it, and in particular this comment stuck with me:
The QQQ's closed at another record low on high volume. The candlestick could be the part of the “Three Black Crows” pattern, which is bearish because it implies a trend continuation. It seems impossible, but the QQQ's have a measured technical target to the downside at $42. We may see that level on a capitulation move. Many big cap tech stocks have fallen further this week than anyone expected. Some margin call liquidation problems may emerge over the next three days because of last week's blue chip tech decline.
As I am writing this, I am looking at the futures getting a little lower than a few minutes ago. On the other hand we need to be careful not to be confronted with a reversal "in our face" -g-
Here is a chart similar to Hahn's that illustrates his commentary above:
stockcharts.com[l,a]waclyymy[pb50!b200][vc60][iUb14!La12,26,9!Ll14]
I can picture the third dark candle to complete the "three black crow" pattern. One thing to bear in mind on this pattern is that although it means "continuation" of the current trend, there could be a reaction in between... if we are aware of this, we can take advantage of such reaction.
Here is a definition of the Three Black Crow pattern:
stockcharts.com
In this definition, they define it as a "reversal pattern (after an uptrend. (not the case oof the QQQ's). However, look at the following candle, immediately following the third dark one... that reaction could be significant, and then it continues on down.
Here are other illustrations of the same pattern:
taguru.com
edit:
further detail on the pattern above:
taguru.com |
