Handsome James (Falvo): Today's Market Commentary Friday February 13, 2009
Well we had a huge market reversal yesterday off of the home mortgage news that came late in the day. We did get that 7700 level I was looking for in any weakness. If you look at the DJ on a daily chart you will notice the last 2 day candles. This pattern is what we call a "SHANGHAI DUO" = This is not in any book as a combination pattern, it was invented by David Elliott when he identified the combination pattern of a Doji and hanging man candlestick pattern as being an important TOP and BOTTOM indicator. Named after the Movie Shanghai Knights. This is a candlestick pattern of Jackie Chan and Clint Eastwood, Chan the Doji, and Eastwood the Hang em High Hanging man. The combination of these two candles at new market highs usually signals a sell signal. The signal is confirmed by price the next day. The combination of these two candles at new market lows usually signals a buy signal . The signal is confirmed by price the next day. SOAP, FLATS, and SNAP BACKS can also confirm these reversals. THIS WAS FIRST PRINTED IN DAVID ELLIOTT'S AET CLASSES, THEN PUBLISHED IN 2004 ON TCNET AND HIS YAHOO SITE. So we will have to how we hold up today. Technically yesterday's rally [...]
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