RE: cynic27 Aug 2010 23:35
Once again, no idea who this mob are. Before posting tonight, I read briefly about whichever EPIC I'd charted last night and they appear to make non-stick chewing gum. Hmm
APF are reported as having broken out of their downtrend and retested the trendline and should bounce.
Or not. I've got their chart on screen and it just might spike within the next week.
Which I doubt because there's a bigger problem.
I recently mentioned that the only chart pattern I pay attention to is a head and shoulders formation which should typically take 3 months to form etc etc. I like the pattern, because it conforms to logical emotion - confidence - brilliant - well okay - stuff this, I'm off. And then, hey, that's cheap. I remember when I say it at xyz... Then again, who remembers Lancia - funny story at the end.
The 3 month rule may be utter rubbish.
Between July of 2009 and now, the FTSE (and the DOW) have formed lovely head and shoulders formations. Last time that happened was between 2007 and mid 2008 which is a bit scary as we all know what happened in 2009. I rewound back to 1998 to view a similar development which failed to meet the current trend - except that on that occasion there were 4 touches of the lower trend line before the market spiked aggressively upwards.
At this point in time, we've had only three.
Despite the euphoria of today, we remain within a downtrend unless the FTSE goes over 5210 on Monday which is unlikely 'cos it's closed. Anything above 5249 will make me heave a sigh of relief on Tuesday and I shall probably change from shorting to going long on most stocks. I may even buy some shares which will be a pleasant change. Whilst I love spread betting (through LSE Spreads, obviously) I use it to keep a flow of sometimes not very easy income and there is less stress in the absurd habit of saying, I own 1,000 share in XTA or 120,000 RBS. After all, it's only money.
Lancia is perhaps the best head and shoulders pattern. They made brilliant cars which fell apart - most failing their first MoT test due to chassis or brake line corrosion. I once notoriously drove from Glasgow Airport to Gatwick Airport one night in something called a Lancia Monte Carlo. My rather drunk passenger kept shouting, "keep it above 120 or I will miss the flight". The journey took 4 hours and the now sober passenger exited the car at 5.30am to be part of a trade delegation to Moscow. I'd averaged over 100mph for 4 hours which is probably a sin...
I drove home, as far as Kendal, then fell sound asleep in a service area. I loved that Lancia and if I ever see one cheaply, I will buy it . In the UK, Lancia did a head, shoulders, feet, grave formation which was probably not a good thing.
And in a similar vein, has anyone noticed the Renault F1 team are being sponsored by Lada Cars?