Similar to yesterday, Goldman put in another H&S Top. This one began with a Rising Channel (in white) that morphed into the H&S Top (in yellow). Notice how the high of the Right Shoulder of the H&S Top also was a failed retest (confirmation) of the broken channel (arrow).
Nested patterns and failed retests (confimations) tend to increase the chances of success in getting to the target. The breakdown put 84.12 IN PLAY, which MADE.
4 comments:
I posted a comment for you on your post from yest. I don't know how to transfer it to your most recent post.
Mark,
I think you're right.
If a broker has allowed 100% of the shares that they hold in house to be shorted, they've got a big problem in any kind of market downturn because more longs will sell than shorts will cover, and the broker will be caught "naked short" the stock.
What they ought to do is allow only a certain percentage to be shorted, say no more than 50%, so that they don't have the problem, but as you said, they probably don't want to bother with it.
Back in October, I got an e-mail from TDAmeritrade notifying me that effective IMMEDIATELY, they could cover my SPY short postion at any time without my permission. YEEKS. They obviously were anticipating a problem with being caught naked short.
When I called to inquire about it, I was told that it wasn't a problem yet, but just be aware that it could be. I asked how it would be determined who would be first in line to be forced to cover, hoping that it would be "first in...last out." I was told that it would be decided by lottery! Swell...
I agree that they're discouraging shorting, in general, and given the fragility of the market, I can understand that. If we go into another tailspin like we did last autumn, naked shorting not only would exacerbate the problem, it could result in an outright feeding frenzy on the downside.
Thanks for sharing your thoughts with me.
Yeah I've been been day trad shorting goldman for recently. This thing is going to get whacked
Beyond,
Glad that you've made some $$$ shorting Goldman. I was playing it long until we got to the Bearish Wolfe Wave 5 "Fakeout/Breakouts" on Tuesday morning, which is when Goldman put in the Head of the first H&S Top.
In the daily chart, though, Goldman had a TRIPLE bullish pattern breakout on December 30, which was the catalyst for it getting to the 92.20 high on Tuesday.
The largest of the three patterns was an Ascending triangle. Those often morph into Bearish Rising Wedges, which could be the case here. I'll post the charts later on. Feel free to comment on them if you'd like.
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