The Black Crossover Head and Shoulder Boulder

I have written the SPY 108 calls against my long positions. As is the fate of most technical signals that make the front page of the newspaper the "Black Cross" was actually the "Black Killer Crossover", an ancient Japanese Toro trick, where a tuna turns out to be a bull. And the "Head and Shoulders" top was actually the "Head and Shoulder Boulder" taught to the bulls by no other than the Road Runner. Have a good night.

3 comments:

PJ said...

Heh.

What faked me out was the startling weakness yesterday after the overnight rally. I was surprised that the bulls couldn't even maintain a small bounce after 7 straight down days.

Still don't know why yesterday was so weak and today so strong. Maybe one more head fake was needed?

Tsachy Mishal said...

Thats why I keep my eye on the indicators rather than the "action". Following the action would just suck me into whatever the crowd is thinking.

Anonymous said...

Like PJ, it was the weakness yesterday that confused me. We gapped up and then went nowhere, so I bailed out at 1030, for a slight gain over the 1020 I paid.

I still think we're heading down to near 900 on the SP500. This rally is squeezing the shorts, making them that much more reluctant to step in next time we go down, which means that next leg down could be very steep.