Discuss Market Comments 04/27/11

3 to 5 day rule - The inverted head and shoulders patterns broke out to the upside on many of the major indices yesterday. This is a big development, and the 115-point rally was very strong, but it is just a little too early to celebrate...

Market Commentary for 4/27/11

Current Daily Market Commentary

 

[pmcint01]

Tom,

So are you saying it looks like we are heading towards the left Head and Shoulders pattern that you posted in the commentary? If so, do you think it is best to buy in when it goes back to the blue line?

 

[tsptalk]

Testing the neckline / blue line is common, but it doesn't always happen. I'm just looking for it to stay above it for a few days.

 

[gman48]

Tom,
Newbie here. If I were to make an IFT transfer @ 10am to move from G to the S, would I be buying in at the previous day's close or the close of the day I made the transfer?

 

[wvango]

Tom,
Newbie here. If I were to make an IFT transfer @ 10am to move from G to the S, would I be buying in at the previous day's close or the close of the day I made the transfer?

You would buy at the rate that it closed at the day you made the IFT submittion.

 

[tsptalk]

You would buy at the rate that it closed at the day you made the IFT submittion.

...yes, as long as the IFT was completed by 12 noon ET.

 

[JTH]

Tom

I would like to point out that an inverted H&S is more common in a downtrending market, not an uptrending market.

I would also like to point out too many folks are watching this patteren. That's all I have to say about that, thanks for putting up with me.

 

[tsptalk]

I would like to point out that an inverted H&S is more common in a downtrending market, not an uptrending market.

What I was saying is that an upside breakout above the neckline is more common than a test of the middle of head in an inverted H&S.