Inverse H&S Forming On QQQQ? (Monthly Candle)

Discussion in 'Stocks' started by Algo_Design_Kid, Sep 25, 2010.

  1. 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
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  2. spd


    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.
  3. I have to agree. Just throwing it out there. It does though back up this that I saw from
  4. spd


    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.
  5. 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.
  6. 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*
  7. Hourly candles which provide my expectations of S&R until we break this range.
  8. You think the elimination of weak longs occurred yesterday?
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  9. spd


    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.
  10. Definitely looks like there is another 20-40 ES Point range that wants to build on this one, to me
    #10     Oct 5, 2010