Bearish belt hold Working out

For a nice bearish belt hold scenario, look at Figure 6-23. This chart of exchange traded funds represents a basket of biotech stocks also known as the Biotech Holders (BBH). The BBH bears had been overtaken by the bulls, but the short belt hold reveals that the bears are clawing their way back into the action.

Figure 6-22:

Chart of a failing bullish (long) belt hold in soybean futures.

Figure 6-22:

Chart of a failing bullish (long) belt hold in soybean futures.

Take a closer look at Figure 6-23. Notice any additional bearish patterns? I chose this chart specifically to try to push you to start looking beyond what I highlight on a chart. Give yourself a pat on the back if you notice the doji the day before the belt hold. Give yourself two pats if you notice the doji's short signal was intact while you received a short signal from the belt hold. I'd give you a chance to give yourself three pats on the back, but that can be hard on your rotator cuff.

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