Making money grow by finding bubbles and shorting them
Thursday, August 22, 2013
India close to a short term bottom
INP (3X reversed) in megaphone pattern
News from India is very bearish. Volume in most India ETFs spiked two days ago. Yesterday was a 5% down day. (15% up on the 3X reverse chart) A reversal day is close. However it still might be early in the general megaphone pattern with more tops to follow. The correction might be short lived and a bigger spike might start to form. Another possibility is that this might turn in to an even bigger spike right away. That would be a gift and should be betted aggressively. Anything up from here should be betted but with some caution that this is most like not the end of the pattern. The risk in situations like these is that the pattern will not go below this point for months from here. I studied a lot of megaphone patterns and I would say that this pattern is beond that point now. People who played the second largest top from here might have their money trapped for some time but people who play this top most likely wont.