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Long term economic trends and what they imply
#5
Things of which we should be wary:

[Image: tripletop.gif]

The infamous triple-top. In the third peak people are betting to recover their losses. The sellers are intent on selling and the buyers are leaving. Ouch!  The gains from before the start of the run-up will vanish.

Head and shoulders. Much like the triple-top, except that the first and third peaks are much lower than the second peak.  It is likely that the stock will go back to where it was before the start of the rise to the first peak. The third peak, as in the triple-top, is a sucker's rally.

[Image: HeadandShoulder_050906.gif]

The evening star indicates through the activity near the end of the rally that sellers are becoming the norm and that buyers are betting scarce. Sell and wait.

[Image: EveningStar.gif]

http://www.investopedia.com/
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist  but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.


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RE: Long term economic trends and what they imply - by pbrower2a - 02-28-2017, 10:12 AM

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