The success rate of head & shoulder patter is laughable. We all remember the head & shoulder pattern discussed on the media back in 2010 in fear of double dip recession. Well, it never materialize. As a matter of fact, the SPY rallied more than 30% from the neckline till last May.
Head & should was also identified on the IBM daily chart. And it looked ominous right before last night’s earnings report. Surprise! Today IBM was up over 4%, defying the H&S patter once again.
H&S pattern should be removed from the chart book period. It’s a tool invented by the elites to brain wash traders and investors, so that they can make a killing for themselves. Period.
Fortunately I didn’t short IBM, as my hands are full shorting the market overall. Sadly, yes, I find that a consolation. LOL.
Now L-H-R didn’t work. May be L-L-H-R-R patter would work?! Next target for IBM is 188.50 – 188.70 area, based on my 123.6% Fib extension on the 60 minuate and the obvious horizontal resistance from last December, respectively. I made some day trading shorts successfully off the 100% Fib extension around 187.33 this morning. I plan to do the same at 188.50.