The dow jones looks like its forming the right shoulder of the sexiest head and shoulders pattern I have ever seen. The scale of this thing is huge with the neckline at 11,750 and the top of the head over 14,000. Using Bulkowski's target (based on his statistics) you get a price objective at 10,400 and I would call that a conservative chart read. Confirmation of the pattern will be a clear weekly close below the neckline so we are a ways from there today. I am still expecting the dow to rally hard breaking 13k and closing above it's 200 dma. When the headlines start touting a net gain for 2008 thats when I want to be buying DIA puts because I'm thinking the big boys are trying to create strength to sell into. Once it becomes obvious that the breakout has failed the market should drop fast, but we'll just have to see. In other news, Megan Fox was crowned the sexiest woman in the world. Schwing!
No comments:
Post a Comment