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Tuesday, December 22, 2009

NIKKEi schoen, Darling, NIKKEi schoen

Ahhh, the fusion of Japanese and German. .... binv, you are off the reservation with these bad puns!!

Just wanted to review some of my NIKKEI calls and to check up on them. I have put together several posts discussing the NIKKEI the last several months: A Trip Around the Globe: A Look at a Few International Indices, NIKKel, I Deserve at Least $0.06 For This Analysis last week, If I had a NIKKel for .... Nov 29, where I identified the potential H&S setup, and Long Term Count of NIKKEI back in Sept.

I want to first back to my Nov 29 post (If I had a NIKKel for ....) where I identified the potential H&S setup. Here is the chart from that post:



We did indeed get a bounce off the identified support line, as I discussed in my next update on Dec 7 in this post: NIKKel, I Deserve at Least $0.06 For This Analysis. Here is the chart from that post:



H&S Setup still looked good in this Dec 10 post: A Trip Around the Globe: A Look at a Few International Indices



.....

And that brings us to today. We have a right shoulder forming in approximately the timeline that I discussed several weeks ago. And the latest development is a rising wedge (bearish) forming at the apex of the right shoulder:



This looks like a very good shorting spot to me. The rising wedge will probably extend out just a bit more, but this looks like a low risk / high reward short spot. How do you play it? Don't ask me, I am just making observations on 2-D paper :)
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