Monday, October 10, 2011

Potential Inverse & Shoulders setting up?

So we did get that gap up to 1180's after all as I had been speculating last week and I think we are now at the end or near the end of the 5th leg that started from 1074. And while it is hard to say which level will be the top, it is safe to say that we should get a big correction after this is done. The market is hitting the 1195 resistance and the next hurdle would be 1210 and 1220, so maybe the market might make that far? but I executed my plan and went short at 1183 and wait for the correction. I think one very probable scenario is the market dropping to 1120-1130 and forming the right shoulder of an inverse H&S that could target 1325, so we'll see what the market does the rest of the week. The same people who have been buying recently are going to be selling soon.. works like clockwork.

On a side note, I wanted to point out the accuracy of using the TA.. had I not been fearful of a correction I would be up 7% today on my margin instead of the 1.5% I ended up with. These TA numbers it seems, trumps all..

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