Subscribe to RSS feeds Bulkowski Blog via RSS

Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30+ years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at

Support this site! Clicking the links (below) takes you to Amazon.com. If you buy ANYTHING, they pay for the referral.

Picture of Bumper.
Kindle
Paperback
Nook
Picture of the head's law.
Kindle
Paperback
Nook
Chart Patterns: After the Buy
Getting Started in Chart Patterns, Second Edition book.
Trading Basics: Evolution of a Trader book.
Fundamental Analysis and Position Trading: Evolution of a Trader book.
Swing and Day Trading: Evolution of a Trader book.
Visual Guide to Chart Patterns book.
Encyclopedia of Chart Patterns 2nd Edition book.

Bulkowski's Blog Archive: ITB

Class Elliott Wave Fundamentals Psychology Quiz Research Setups Software Tutorials More...
Busted
Patterns
Candles Chart
Patterns
Event
Patterns
Small Patterns
Market
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 06/22/2017
21,397 -12.74 -0.1%
9,320 27.23 0.3%
727 -2.42 -0.3%
6,237 2.74 0.0%
2,435 -1.11 0.0%
YTD
8.3%
3.1%
10.3%
15.9%
8.7%
Tom's Targets    Overview: 06/15/2017
21,600 or 21,000 by 07/01/2017
9,100 or 9,600 by 07/01/2017
720 or 745 by 07/01/2017
6,300 or 6,000 by 07/01/2017
2,525 or 2,390 by 07/01/2017

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

 

Blog Posting: February 19, 2008, Home Construction

The DJ US home construction index fund

Shown in the figure is the DJ US home construction index fund (ITB). To the right of the red line is how a head-and-shoulders bottom would look, if the index plays out like I think it might. Price will continue lower for a week or two and then turn up, leaving a right shoulder to print on the chart. The up turn at the right shoulder low might be called by additional FED lowering of interest rates or some other event.

Why a head-and-shoulders bottom? From the shape of the left shoulder valley (LS) to the sweeping move up and then down again to the head, it just looks like it's aching to form a mirror of the left shoulder on the right side. This is a guess, of course, but in the absence of anything else, it will have to do.

 

 

 

Top 

ITB Aftermath

The stock of the home construction index fund on the daily scale

If you look closely at the first (top most) chart on this page, you can see where I copied the price movement to the right of the red line from the left, starting in mid November, at about $19.

The bottom chart shows how the stock actually behaved. While not an exact match, it sure is close. This "mirroring" (across the red line) is a technique that may turn up some interesting and amazing predictions, as in this case.

-- Thomas Bulkowski

 

 

 

See Also

 

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Adam and Eve virus: Takes a couple of bytes out of your Apple.