What do you think? I guess the best setup would usually be where the right shoulder is lower than the left but.. Just throwing it out there
In my opinion head and shoulders are one of the least reliable signals. Its not a head and shoulders until the pattern is complete, at that point you've missed the trade. Only alternative is get in early. Not much of an edge in entering a position in hopes that a lengthy pattern comes to completion.
I have to agree. Just throwing it out there. It does though back up this that I saw from stockcharts.com http://blogs.stockcharts.com/dont_ignore_this_chart/2010/09/point-figure-breakout-for-qqqq.html
Patterns aside, looks like the q's continue to head higher. I wouldnt jump in here, but rather look for some consolidation with a 52 handle and get long there, save for any bad news. If that scenario doesnt play out promptly, Id look to get short on a break of 48.50ish.
I just can't believe q's are pushing 2007 high's almost. I guess this is mostly aapl though, which by itself is a serious beast. It looks like SPY has about 35 more points to go until 2007 highs. I wonder if a short qqqq and long spy is a good play? If this trend were to continue though I would probably be broke by December, ha.
I believe it will be about 5-10 more trading days until qqqq breaks upwards quite sharply. Taking a look at the daily chart here I definitely see this triangle continuation / consolidation forming over the past 8-12 trading days. Very bullish *IMO*
I didnt expect that rangebound chop last week, that was the consolidation I thought would take place closer to 52. But to answer your question, yes longs were definitely shaken out, but now ya likely have a hefty amount of overly-eager shorts trapped. I think r:r favors getting long at these levels.