Financials play a pivotal role in the markets. They led the way as they enabled the previous run-ups and bubbles, and they led the way down when the house of cards was revealed for what it was. The survival of nearly all markets is hanging by a QE thread, so we’ll take a fresh look … continue reading →
Tag Archives: harmonics
Our charts have grown fairly “busy” lately, what with harmonic patterns, chart patterns, fan lines, channels, etc. I find it helpful every now and then to take a step back and examine those elements that have had the biggest impact in recent years — and are likely to continue doing so. In my opinion, the … continue reading →
Looking at the markets these past few days, I’m reminded of the prize that comes in a box of Cracker Jacks. Not a real prize, mind you — but one of those cheap little pictures where the image changes as you shift the angle from which you’re viewing it. It’s called a lenticular image. Despite … continue reading →
I’ve taken advantage of a relatively quiet morning in the markets to finish mapping the road ahead. There are quite a few harmonic patterns in play right now. My practice is to map all the apparent possibilities and look for confirmation (or lack thereof) between patterns — and then look for ways in which they … continue reading →
I wasn’t sure what to write about today until I got a great question from a reader, who hopefully won’t mind my reposting it here: Pebble, I enjoy your analysis, but are you really saying you bought at the low on Friday and you sold at the exact high yesterday? “After scalping a quick 36 … continue reading →
UPDATE: 10:30 AM Last night’s call on the dollar was timely. Check out the candle on the daily chart — the completion of both a Bat and Butterfly pattern. EURUSD also seems to have put in a bottom, though as mentioned earlier it’s going to take ein Akt des Bundestages (literally) to save the euro … continue reading →
Yesterday’s Bat pattern reversal we expected has confirmed this morning. SPX, currently down 7.42, was off as much as 11.90 just after the opening. Bat patterns complete following a .886 Fibonacci retracement of a significant move — in this case, the 1422 to 1357 drop from April 2 to April 10. 88.6% of that drop … continue reading →
The analog we’ve been watching since April 9 is playing out nicely so far. We got the original bounce at 1357 as forecast, followed by a rise to the middle of our 1380-1400 target range. The H&S pattern we expected did, in fact, set up and complete yesterday. Now, we’re back testing the little channel … continue reading →
ORIGINAL POST: We’re finally seeing reactions on the harmonic pattern completions we’ve been watching for what seems like forever [see: Everything’s Coming Up Crabs.]RUT completed a Crab Pattern (in red) within the last leg of a Bat Pattern (purple) off the 2011 highs. It never has cleared the TL off the May and July highs. … continue reading →