What We're Reading

Diamond Tops and Head and Shoulders

Posted by StockBuz on April 28, 2014 at 12:28pm in Technicals

If there were ever tops, here's what they potentially resemble with heavy volume (distribution) accompanying. As GT pointed out, the "megaphone" patterns also resemble "diamond tops" and take one guess which way these appear to be leaning? (click images to enlarge) Trade the direction of the break, but it's ain't looking too pretty folks. Stayed hedged or stay on the sidelines.

For what it's worth, here are four inverse, leveraged ETF's on my radar. As with the tops shown above, nothing has broken out (yet). Again click the image to enlarge.

stock market tops, spx, dow jones industrial, pattern trading, short etfs

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StockBuz April 29, 2014 at 2:06pm

By the same token, I *could* ponder a diamond top in XLK as well. Which way will it break, is the question.

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