Friday, May 22, 2009

It's too simple

I have now seen pure model driven technicians and technically inclined fundamentalists say that the market is tracing out an inverse head-and-shoulders Other than being anal enough to scream that it is "inverted," not "inverse," the real problem is that everyone seems to be assuming that the pattern - which even if valid is only 70% completed so how do we really know? - is going to be a simple classic h/s pattern.

Will a crash-like bear market really correct simply? Will it correct that quickly? After all, if we look for a h/s pattern we infer a certain time will pass as it completes.

My take is that it's not that simple and the market is not done fooling all of the people some of the time. Now, who knew Lincoln had his CMT?

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