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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: Shack who wrote (19268)	11/5/2001 7:41:20 AM
From: AllansAlias	Read Replies (2) \| Respond to of 209892

Way to many people are talking about this H&S that doesn't even have a right shoulder. Like I said last week when we started to rally, "imagine how lathered the chart-chasers will get if we do get a lower low here -- there will be one fine looking head and shoulders there." I mentioned that gut feeling on Saturday and now I get to the office and see the futures all happy. Early days yet, but I am mentally prepared for a new high in tech. I think it would be short-lived. I will hedge long with the futures though and double-down at the new top. Sentiment has been whipsawing in a range. A new high could finally give us a s-t extreme that would allow for a decent down-leg. Second, I think this draw in the most amount of money. For instance, although Rydex is a tad bullish here, it's not extremely so and there is relatively high levels of moenny in the bear funds. A pop here would cause the bears to capitulate I think, continuing the whipsawing action. Third, I don't see how the structure we built can support a decent up-leg -- a new high maybe, but not a good run. Fourth, it would allow the charts to push through (probe) some good resistance, getting the chart-chasers all lathered before heading back down.