Head and Shoulders Shampoo
Courtesy of RobotTrader at Zero Hedge
After today’s action, thousands of technicians will be pulling out their slide rules in order to mull over the "double top" or "head and shoulders" pattern on the NY Composite. With millions of traders worldwide all looking at the same moving averages, the same patterns, the same 5-min. charts, all in real time, the fate of the stock market and the fate of mankind will now be determined by a few squiggly lines. Which way will it go?
Who knows? But the last few days clearly saw the same herd movement and mood changes which seemed to oscillate back and forth within hours, all determined by the micro tick action of the EUR/USD.
Does Trichet know that the mere utterance of one word or another regarding the ECB monetary policy could determine the fate of modern civilization as we know it?
"Come in here, my little flower. Little do you know, I have unlimited power!!!"
As usual, upon the slightest downtick in the EUR/USD, investors immediately dumped oil stocks, material stocks, fertiliizer plays, etc. and where did they go?
Why, of course, the Last Bastions of Safety and Security: Teen Retailers and Office REITS:
Where do we go from here?
Millions of hedge funds want to know. Because the status of their 2010 employment will be determined by their proper positioning the next 6 weeks.
Double nipple top or not?? Can you see the nervousness and unease?
Watch these:
At support:
At resistance:
Will Goldman upgrade the steel producers?
Or will they downgrade the oil service and/or financials?
We just have to watch and wait.
Because Goldman’s Prop Desk traders are also watching and waiting…except they already have Monday’s playbook.
