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Strategies & Market Trends : Classic TA Workplace

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To: Henry J Costanzo who wrote (129019)	2/3/2006 6:07:40 PM
From: Shack	Read Replies (2) of 209892

I think you make some good points. Larger degree wedges often dick around forever at the lows, the lower-risk play is to wait for the upside wedge break. The overthrow on the AA wedge for instance lasted a month before it regained the wedge, options would have died a slow death. The length of time was, as you implied, due to the stock coming out of a multi-year downtrend....interestingly within a larger multi-year uptrend/Jell-O. It really depends on the degree in which one is trading. In the case of UTX I view the wedge as a weak wiggle corrective counter-trend pattern within a very strong uptrend which I think could resolve to the upside in a matter of trading hours not days, even if the upmove (should it ever come of course) is slow by your standards. And given the uptrend there I think new highs are the likely scenario. I wouldn't touch the DELL wedge until the first move, the subsequent correction and only then would I think the action would be quick enough to warrant an option play. It actually took me years to figure this little "secret" out, I would always have the right read but made no money!

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