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Kris - - -
Dec 09 13:36 pm
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All Comments by John Lounsbury »Monday's Market Surge: Head-Fake or the Start of a Real Turnaround? [View article]
I also look for head and shoulder patterns, but I have learned through many disappointments not to start looking at them seriously until past the second shoulder and approaching the neck line.
Also, I have a big concern regarding the rally that started November 21. I wonder if it is an anticipation rally, anticipating the formation of the Obama cabinet. If so, will the market sell the news when the cabinet is largely announced this month. Will we then have another anticipation rally approaching inauguration? Then will we see another sell-off? Buy the rumor and sell the news seems to be especially operative in times of high volatility. An example is the rally from late October to November 3, followed by declines to new lows on November 20.