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…
After having 8 of my 12 open stock and ETF positions stopped out this week, I'd say the market is starting to roll over. It could be because of Obama's bank tax or something else. Who knows and who cares!
All I know is that my trend system took me out as it was designed to do. Of course it was sooner than I expected but I guess that's the way the cookie crumbles.
I got taken out in FDM yesterday after riding a bit of its trend. I made money on this one, about 8.5%. Not too shabby.
And yesterday out of a total of 5 positions. One position was a good gain (FDM) but the others added up to slight losses; add them all up and I'm down only $5. I'm not upset, just satisfied my system is working. Of course I'd hope for more of a gain but sometimes break even is just as good.
and I'm about to die!!! No, I'm just kidding but I am in North Dakota for work. So what do I do in my spare time up at 30,000 feet? I'm doing Python tutorials.
Well would you punk? BIDU made a gap up under heavy volume after the anouncement that Google might leave China. The first candlestick after the news was a hammer at the top of a resistance line, which brought out the Bears. But the Bulls broke through that resistance the very next day with vigor. So, would you buy BIDU here?