S&P Inverted Head & Shoulders - Time to Buy TARGET 4855

Inverted Head & Shoulders Pattern

1. This pattern showed a triple-bottom for the head, going back 1 YEAR to April 2021.

2. The Distance from the Right Shoulder to the Head is the distance for the move after the break of the neckline.

$437.50 - $417.50 = $20

3. Neckline Breakout - $465.75

4. Target After Breakout - $4855

Looks like Double Top at 4800 coming OR

All Time Highs.

Stay Tuned.

- drchelsea

Comment:

Thoughts?

Hanging Around and Waiting for Neckline Confirmation?

Usually this would be the plan, wait for the break of the neckline, setting stops, sometimes waiting for 5 percent breakout above neckline for confirmation. This is a time to buy stocks. Not sell, not wait for breakout confirmation.

We have a Triple-Bottom going back 1 Year. I do not know what better of a Head to an Inverted Head & Shoulders you would like.

We are aggressively buying here.

- drchelsea

Comment:

SMH / QQQ


Semiconductors

Also saw some strong buying of Cyclical Tech today. Semiconductors. It also appears that the SMH is bottoming, and making a reversal.

Also, the logical next step would be a broader rally in beaten down TECHNOLOGY.

I would be buying Cyclical Tech Here.

We bought the following today as well:

SMH
AMD
NVDA

Comment:

NOTES FOR THE BURNED AND CAUTIOUS

Comment:

It has been a brutal correction, and a Bear Market since about January 2021. This is a rolling Bear Market. Speculative tech was first. You can see the rest from the charts, and ending with Big Cap Tech. We have had nice rotations in Energy, and Financials, until the Financials rolled over.

I would be looking at QQQ and Tech for the next leg up.

Right Shoulder

If you are really cautious you can wait for the right shoulder maybe you get a better entry as the right shoulder meets the left shoulder and hits the OTHER previous Head & Shoulders on the pattern.

- Cheers.

Comment:

April 19, 2022

Update 3:20pm

Looks like a very nice rally today, led by Tech, Semi's / Cyclical Tech and please Mr. Market, for the love of God, let this one have legs for once.

Fingers Crossed

- drchelsea

Comment:

NOTE:

Looking at a quick market analysis, except Energy, this is an "Everything Rally". This is a very good sign.

Comment:

Everything but Energy, Gold, Bonds and Emerging Markets (China / India ...)

Comment:

Also today Financials are KILLING IT. This is a great sign, the Canadian and US Bank weakness for the last few months has been brutal. Important sign as well.

Comment:

If you are sitting on cash, you should be deploying capital today. Honestly.

Comment:

Or you can deploy massive capital yesterday, as we did ;)

If you are worried about getting burned, leg in, this might have legs.

Comment:

Making a comment about Markets and tops and bottoms:

1. Tops are in when people are all in, and rational exuberance takes hold. And all the shorts are broke.

2. Bottoms are in when the shorts are all in, and rational exuberance takes hold. And all the longs are broke.

3. After #2 Mr. Market will proceed with Bear Market Rallies and other nonsense, until all the shorts and bottom fishers
are washed out.

4. Once all the punters are broke, both long (ALREADY BROKE) and short (RECKONING AROUND THE CORNER),
the market will go up in an orderly fashion, and probably end with panic buying, and a complete BLOW OUT of the
shorts. Just like the LONGS, you must be wrecked before this is over.

We are almost there.

- drchelsea

Trade active:

UPDATE

Shorts are going to have real problems here.

S&P crossed the Inverted Head & Shoulders Pivot at 415.11.

Good Bye Pumpkin Pie

-drchelsea