Sidetracked
Been sidetracked with a great online comic I discovered…
Been sidetracked with a great online comic I discovered…
I wrote about $PMCS back on 1/14/10, the day after it made a nice hammer formation at its 200 DMA. It made the hammer at the bottom of a trend with very little volume or conviction for me, and I reviewed the weekly chart for additional clues. At that time I suspected it might test its lower boundary of about $7.94, and it did yesterday. Too bad I didn't short this one.
Rules of candlestick formations: Volume is always key indicator of how meaningful the candlestick formation is.
$RFV was a winner for me. In fact it was my largest winner in the bunch, clocking in over 12% or about +3R. However, it got taken out via a stop on 1/21/10 as the market looked like it started to rollover.
Rules of the trend system: Always use stops and strict money management. Let the market decide when its time to quit.
I entered Visa ($V) back on 12/22/09 after it made an all time high, with heavy volume, the day before. It then went sideways for a month and I was finally taken out on 1/22, right below its 50 DMA. I did manage to move my stop a bit higher over the course of this trade, per my trend system, but lost -0.7R on this one. Such is life I guess…
I wonder if Chris got taken out of V on Friday as well?
I've been posting a few candlestick chart scans and asking my readers, "would you buy them" here and now or just posting some basic commentary about them being screwed. Let's take a look at how one of them faired after I wrote about them. Today's review is $NEP, which made a wicked hanging man on Jan 7th, and I thought it was in trouble based on its parabolic move and then hanging man.
Well it was in trouble, see how's breaking down from here? I think its gunning for the $8 area…