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Despite the continued broad market volatility, it is interesting to see some of the more high beta industries tighten up. Moreover, the inverse head and shoulder patterns that I have previously pointed out in EEM FCX FXI all remain firmly intact. In other words, we could be looking at a situation where the bears will continue to lose their grip on this market, with volatility eventually collapsing.
In the meantime, note another inverse head and shoulder potential bottom in REMX, ETF for the rare earths. Price is holding above the neckline, but that in and of itself is not as impressive as the individual charts. MCP and the rest of the gang are working through very tight bases, with daily Bollinger Bands pinching in. The presumption is that a big move is coming, and it is coming soon. Given the tight price action, combined with the favorable volume patterns, I believe the bulls have an excellent chance to run these often too-hot-to-handle high beta burritos.
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so delicious
@chess – What do you do, read my mind?
Once the power came back on up where you live, I could read it.
I figured that was what was going on. I better put my tinfoil cap back on…
Chess
what do you think of those GIANT complex inverse head and shoulders in EEM (emerging) and VGK ( euro stock index)
Both look vivid, and pretty bullish here
The ONE thing that could stop their breakouts is all this Iran hysteria. If oil spikes to 130-ish, I don’t see XLY and XRT sectors surviving. Even QQQ would get killed
Only had to make 1 trade this year, It was GEO’s Short Ree !
..what a great trades that guy had !
, get him back on occassion.
Italian Finance Minister warns that if Prime Minister Berlusconi does not step down, “on Monday there will be a disaster on the markets.”
DailyFXTeam Nov 04, 2011 17:38:20 GMT