# A Feared Technical Pattern Forming On The Financial Stocks



## InTheMoneyStocks (20 August 2010)

As much as everyone would like to think that the markets will go higher, it appears the charts are telling a different tale.  Major leaders in the financial industry, namely Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) are making one of the ugliest daily patterns a technical trader will ever see.  This is called a classic bear flag.  The bear flag is essentially consolidation off of a significant move which usually leads to more of the same.  In this case selling.  Note on the two charts below how Goldman Sachs and JPMorgan Chase had sold sharply weeks ago and now gone into a consolidation pattern which is noted by trading sideways. Technical gurus understand what this means and it can send shivers down the spine of any bull.  The odds are favoring further downside on these market leading financial stocks.  That means further downside in the markets as these stocks break lower and complete the pattern. 

Gareth Soloway


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## tech/a (20 August 2010)

> Note on the two charts below how Goldman Sachs and JPMorgan Chase had sold sharply weeks ago and now gone into a consolidation pattern which is noted by trading sideways.




nice charts.

Even without the charts and the blurb
there is technical indication of a possible sharp fall in pricing sooner than later.


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## Timmy (20 August 2010)

InTheMoneyStocks said:


> As much as everyone would like to think that the markets will go higher, it appears the charts are telling a different tale.  Major leaders in the financial industry, namely Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) are making one of the ugliest daily patterns a technical trader will ever see.  This is called a classic bear flag.  The bear flag is essentially consolidation off of a significant move which usually leads to more of the same.  In this case selling.  Note on the two charts below how Goldman Sachs and JPMorgan Chase had sold sharply weeks ago and now gone into a consolidation pattern which is noted by trading sideways. Technical gurus understand what this means and it can send shivers down the spine of any bull.  The odds are favoring further downside on these market leading financial stocks.  That means further downside in the markets as these stocks break lower and complete the pattern.
> 
> Gareth Soloway




Gareth, thanks for the info.  

Not sure why your charts haven't appeared, but I have posted charts of NYSE:GS and NYSE:JPM, from Stockcharts.com to illustrate your points:


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## InTheMoneyStocks (21 August 2010)

Hey guys, sorry about the charts. Didn't realize i need 5 posts to input charts. one day... lol


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## Garpal Gumnut (21 August 2010)

InTheMoneyStocks said:


> As much as everyone would like to think that the markets will go higher, it appears the charts are telling a different tale.  Major leaders in the financial industry, namely Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) are making one of the ugliest daily patterns a technical trader will ever see.  This is called a classic bear flag.  The bear flag is essentially consolidation off of a significant move which usually leads to more of the same.  In this case selling.  Note on the two charts below how Goldman Sachs and JPMorgan Chase had sold sharply weeks ago and now gone into a consolidation pattern which is noted by trading sideways. Technical gurus understand what this means and it can send shivers down the spine of any bull.  The odds are favoring further downside on these market leading financial stocks.  That means further downside in the markets as these stocks break lower and complete the pattern.
> 
> Gareth Soloway




A good post mate, you are on the button. Post a few more, and then you can show us some charts to back up your reasonable expectations.

gg


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## Joe Blow (21 August 2010)

InTheMoneyStocks said:


> Hey guys, sorry about the charts. Didn't realize i need 5 posts to input charts. one day... lol




You only need five posts if you are linking to charts on other websites. You can attach charts directly to posts by clicking on the paperclip icon in the post editing/formatting options (see attachment).


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## Pager (21 August 2010)

nteresting view but IMO most technical analysis’s or these technical patterns, flags, pennants, etc get it right about 50% of the time which makes the coin flick “Heads or Tails “ just as valid.

We could be about to take another dive but usually when there’s talk of the immanent fall in markets the reverse happens, well around 50% of the time it does anyway 

Heads we go up in the next 12 months, Tails we go down 

For the time being i will just follow my stratagy which has started accumulating stocks ATM, but if we do go /\ /\ then i will soon be back to cash again


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## gav (21 August 2010)

Pager said:


> nteresting view but IMO most technical analysis’s or these technical patterns, flags, pennants, etc get it right about 50% of the time which makes the coin flick “Heads or Tails “ just as valid.




Yes but what is the profit factor from flipping a coin?


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