Jul 29th- Is Market Topping Again?

By David Banister
29 July 2010 @ 11:09 am EDT

Here at TMTF, I enjoy making controversial calls based on Human Behavioral topping and bottoming patterns, often referred to as Elliott Wave Theory. This is a difficult pattern recognition model to follow as there can be numerous interpretations. Instead, I look for additional clues like sentiment indicators, a few traditional technical indicators, headlines in the news and covers of papers etc. Recently I saw an article on Bloomberg indicating that short positions were at two year lows, with the ratio of longs to shorts at 2 year highs. Those types of indicators I use to help confirm if I'm on the right or wrong track with a forecast.

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