πŸ“™ Table of Contents πŸ“˜
  1. ☺️ Head-and-Shoulders 🀡 Top
  2. 🐻 Bearish Downtrend πŸ“‰
  3. πŸ“ References πŸ“ƒ
  4. πŸ“˜ Bibliography πŸ“—

πŸ‘οΈ See the 🀡 Head-and-Shoulders Top ⛰️ of πŸ”” Legg Mason Special πŸ’Έ 2007

πŸ§‘β€πŸ« Step-by-Step Explanation 🏫 of the Price Collapse in πŸ”” Legg Mason Special Investment Trust πŸ’Έ (LMASX) during November 2007, which occurred after a bearish Head-and-Shoulders Top or "Three Buddhas" Chart Pattern.

by Albert Clark

1) As It Happened: The ☺️ Head-and-Shoulders Top 🀡 of 2nd November 2007

The Head-and-Shoulders Top is a standard bearish chart pattern [1]. It correctly predicted price declines in Du Pont (1936), Humana Inc. (1988), Teledyne Inc. (1984) and Westinghouse Electric (1946) [2]

On 2nd November 2007 a Head-and-Shoulders Top pattern ocurred in the Legg Mason Special Investment Trust:

Simple Chart of Legg Mason Special Investment Trust as per the 
  Dow Template. Fig.1: Head-and-Shoulders in LMASX. Kindly Click to Enlarge the High-Quality Sector Rotation Chart.

2) Aftermath of the Head-and-Shoulders Pattern: A 🐻 Bearish Downtrend πŸ“‰

The result of this pattern was a catastrophic bear market, where Legg Mason Special collapsed nearly 70%:

Simple Chart of Legg Mason Special Invesment Trust as per the
  Dow Template. Fig.2: Crash of LMASX in 2008. Kindly Click to Enlarge the High-Quality Sector Rotation Chart.

πŸ“ References πŸ“ƒ

  1. ^ Schabacker, Technical Analysis and Stock Market Profits, Study II 'Important Reversal Formations', p.42-64.
  2. ^ Edwards and Magee, Technical Analysis of Stock Trends, Chapter 6 'Important Reversal Patterns', p.44-55.

πŸ“˜ Bibliography πŸ“—

Book Cover of Technical Analysis of Stock Trends by Edwards, Robert D.; Magee, John and Bassetti, W.H.C Edwards, Robert D.; Magee, John and Bassetti, W.H.C. 'Technical Analysis of Stock Trends'. 10th edition. Boca Raton (Florida): CRC Press, 2012, 614pp. ISBN: 978-1-4398-9819-2. Borrow or Buy: [ amazon | biblio | worldcat | abe | isbnsearch | justbooks.co.uk | gettextbooks | goodreads | openlibrary | univ. manchester | librarything ]. Landmark work in the history of technical analysis.
Book Cover of Technical Analysis and Stock Market Profits by Schabacker, Richard W Schabacker, Richard W. 'Technical Analysis and Stock Market Profits'. 2nd edition. Petersfield (England): Harriman House, 1937 (2005 reprint), 472pp. ISBN: 1897597568. Borrow or Buy: [ amazon | biblio | worldcat | abe | isbnsearch | justbooks.co.uk | gettextbooks | goodreads | openlibrary | univ. manchester | librarything ]. Ground-breaking book in the history of technical analysis.

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