In my previous post, I noted that the S&P 500 Index had traced out a Symmetrical Triangle Pattern. I believe this pattern will prove to be a continuation pattern and continue the bullish trend started back in July 2010. What I did not mention is that Symmetrical Triangles tend to be terminal. Sure, there is a thrust move out of the pattern but the resulting action concludes the trend.
So, one idea is that we follow the thrust action out of this daily symmetrical triangle pattern to its logical conclusion. We exit the C Fund at the end of the targeted terminal thrust and move aside into the G Fund. Then, the market should do its thing and go down into May 18. That low, (could conclude at the 200-day moving average), would be the low for the year possibly. Then, we would reenter the C Fund at far lower prices, ride the market back up, and beat the Index for the year 2011.
That's my preliminary thought. Its about strategy.
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