Quite a few have been calling the recent chart formations on many of the indices a pennant. On Monday August 29th the indices not only busted out of the pennant formation but did so with a gap, across the board. The 29th, coincidently, was the day I was stopped out of my MasterCard short but whose counting?
How many traders bought that group consensus breakout that lasted what 3 whole days included the break out day. Either way the pennant seems to have morphed into a text book looking bear flag. But who trusts anything in this market any more?
You can see it here on the S&P Spiders ticker SPY below
and on the Dow tracking stock the diamonds ticker DIA.
and on the Nasdaq tracking stock the Q's ticker QQQ below. Note how the prior 2 major lows were violated. Then rallied back above, only to break back to a new low, only to then rally back above not only those prior 2 major lows but above the recent reaction high. Still wonder why they call these markets broken?
and on the Russell 2K tracing stock ticker IWM
and on the midcap spiders ticker MDY
The bulls should hope that this is wrong and these are not bear flags given the targets implied by the length of the pole take out the mid 2010 lows (re:support) for each of them. But don't ask me, lets ask a Ivy league MBA toting Wall St. shill whose employment bonus and trophy wife hinges on being bullish of stocks.
Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".
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Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
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