Half empty, or half full?
The end of this week saw WFC at it's highest (on a closing basis) since January of this year. XLF, the highest closing basis since November of last year, and GS the highest close since May of '08.
Is that a big cup & handle pattern on the WFC weekly chart!?! A measured move out of this thing would be ridiculous!GS weekly put in a similar Cup & handle pattern, and is still chugging along. A measured move for GS puts it back at previous '07 highs!Of course measured moves don't always pan out and there are "bumps" and fake-outs, but you have to at least consider....on second thought, I don't want to consider WFC or GS back at all time highs, that would be ridiculous, right!?
Although, GS and WFC weekly charts DID succeed in achieving their measured moves out of this year's inverse Head & Shoulders pattern...hmmm.
Meanwhile, the financial sector as a whole (using XLF as a proxy) looks more like a big bear flag.Or does it? Give this enough time, and what might it look like? Yup! a big fat Cup & Handle!
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at firstname.lastname@example.org
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