Two weeks ago I was feeling very bullish and began building long positions. Last week I made this post on why I was feeling bullish and why I was going long. Due to the nature of this market; I got stopped out of many longs shortly after that post, and then we rocketed up after that. I fell victim to the whipsaw…. So naturally I was quite disappointed.
After being whipsawed out I thought about starting to short, thankfully I couldn't find much so I took the week off and have been swimming and going to church carnivals instead. I love summer and lounging around local pools while drinking wine spritzers in old 7-Up bottles.
So I looked at some charts today, and see we are looking at the head and shoulders pattern possibly unfolding. I do plan to start adding some shorts on Friday, but lightly. It seems that lots of folks are talking about it and charts all over the Internet are displaying it. It can even be seen in this Point and Figure chart.
I'm starting to get worried about it actually playing out, but I will short it since it is at resistance. The P&F chart is "bullish" and many P&F guys say you should only go long; however, it is bumping resistance so I have a nice place to put my stops.
To be honest; I think we have as good a chance of testing the April highs as we do breaking the recent lows right now.