Friday, February 3, 2012

Stock Top In?

Please do not take this post as a signal that we are starting up again... I just feel very strongly about it and want there to be a record...

The SnP daily chart has come up for a 2nd test of this strong harmonic sell zone and for the last 3 sessions still can't break through to the upside
This bearish butterfly pattern is completed to near perfection (see attachment)
The shooting star candle bar, a strong reversal price action indicator, on Jan 26 was also on high relative volume, which is always good.
(Bill gates sold $450 million worth of MSFT around here too lol)

I love the risk reward here selling before NFP with a 10 handle stop
If I am right, we go to 1300 initially, but 1265 would be my profit target unless I saw real strong support at 1300
I would love to sell enough that I can take half of it off at 1300 and move my stop to breakeven for the rest

I am writing before NFP, but I feel it can only disappoint the market