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

To: marginmike who wrote (50636)	8/19/2002 11:19:58 AM
From: AllansAlias	Read Replies (1) \| Respond to of 209892

It clearly exists, in the sense that we can see it, but I have some doubt that it's really a H&S. It has to act like one to be one. So far so good, in the sense that we clearly fell hard through the putative neckline. In any case, shorting a throwover of the neckline, somewhere in the SPX 970 area would be a good trade. Whether it's real or not, it will pull back from the neckline test. For the sake of argument, let's presume for the moment that it is not real. That would mean, months from now, we'd have a once in 10 or 15 years Hound signal. For that to come to fruition, we will need lots of people to get faked-out at the neckline and be short. To do that, it will have to fall back under the neckline as if the big swoon to SPX 400 is underway. This will happen in an evironment where there is bad news. There will be no other way to suck in enough bears. I already have a strategy for trading this neckline test whether it's real or not. It is something we should all be thinking about.