DOW MEGAPHONE PATTERN
Better watch out, better not cry, ProTrader Mike is going to tell you why...the Dow is about to take a crashing you know....What is the Megaphone Pattern? A megaphone pattern is illustrated in the following diagram:
The considered bearish, indicating that the current uptrend may reverse to form a new downtrend. A Megaphone Top is rare and must be played with patience. This develops after a strong advance and can last several weeks. The creation of the megaphone pattern reflects a period of time when bulls and bears are battling to gain control of the market. The pattern occurs after the bulls have been charging and driving the market much higher as we have seen in the last 24 months of trading. Last week, I called the market top at 18,100 and put a long position on UVXY at $39.00. The markets did retreat a bit today Down 82 and UVXY hit a high of $43.00 and the Dow did close red. This is a sign of the Cupid Top forming, which is a foreshadow that the Love is over. During the formation of the Megaphone Top bears are exerting increasing influence on the market, causing it to set a series of lower lows. The increasing volatility eventually creates a sense of uncertainty, leads to profit-taking, and deters some of the bulls from making any further commitments. This should result in UVXY ontinuing to rise, MOJO Swing Portfolio is long UVXY with Covered Calls.