To: Gary Wisdom who wrote (18839 ) 6/29/1999 7:21:00 PM From: pater tenebrarum Read Replies (2) | Respond to
Gary, i have noticed the inverse H&S on the nutz as well; however, i would like to see more than the paltry breakout Shaeffer describes, as it is a pattern that fails sometimes - see the transportation average shortly before the late july sell-off last year. the good performance of the sector lately is however something that supports the views of the bulls. the nutz, which trade solely on emotion, can be regarded as an emotional barometer of the market. if they act well, the market acts well. it is a sign of the times that rational thought is no longer applicable when determining this market's likely direction - it is all emotion and liquidity. as the latter is starting to dry up and the former shows signs of being somewhat extended, caution is probably advisable.
