Wednesday, February 16, 2011

Another Sign Of A Top?

Amid record bullishness among professionals ( we have another sign of an impending top as the Qs have formed a very nice symmetrical triangle on the intraday chart.  Usual time and price relationships suggest a top around noon today with target of 58.81+/-, although all that is required is an attempt at a new high around 58.66.

I would caution you not to be fooled by all of the great action in leading stocks of late.  This says something about future market potential this year, but nothing about the immediate future.  I have seen this all too many times before as a plethora of individual stock names appear to heading to the moon just as the broader markets top.  Then all of the wonderful patterns and price projections go to hell in a handbasket.  It is so tempting to be buying these breakouts, but all of the gains for this year could be given back in just a few days.  Maybe this time will be different, but I doubt it.  As they say, that's my story and I'm sticking to it.

1 comment:


Nice post. Its always better to think before investing money in stock market. Investment should be done in share market but with the aim to increase our funds so speculation should not be the mode of investment. Investors should know why they are investing money in any stock.