It never made sense when the RUT went to 800 in December and it didn't make sense when it went up to 764 2 weeks ago. Add a head and shoulders pattern and look out below.
The neckline has been broken and what can often happen on this pattern in a relief bounce that jumps up and over the neckline. If it does, we need to watch it very carefully to gain clues to whether it's actually holding or if it's just creating a bear flag.
This is trading at it's best -- enjoy.
RUT Daily Chart:
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1 comment:
Nice chart, I do have a comment that comes after the Fed meeting:
It was a day to add some to one's short position, as stock prices rose in advance of the Fed announcement, if one is guided by an investment maxim such as mine: "in a bull market be a bull; in a bear market be a bear. In a bull market, one buys on dips; in a bear market, one sells into strength".
Yes we are in a bear market and it is going to get very ugly.
Having said that, however, and having set forth a model short selling investment portfolio in the website link, I suggest that one not use short selling, as all one has is a dollar denominated investment
I recommend that one dollar cost average and investment in gold
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