Counter-trend rally
Today was a low volume counter-trend bounce that is giving everyone a chance to unload or get short. The selling isn't over with a single big day, so look for a bounce up to the 20 day or 50 day moving average and think about getting short. I know I will.
Despite the huge day today, there were only two signals given by my recently devised trading rules. First we have a breakdown in Core Labs (CLB). It is holding its 50 day moving average, but I suspect this has more downside.
On the bullish side, Priceline (PCLN) flashed another buy signal today. This chart is simply amazing given the current market conditions.
3 comments:
could you elucidate on your recently developed trading rules?
You can find more on a previous post: http://novicebear.blogspot.com/2007/10/volitility-breakout-using-ibd-100.html
I don't want to go into too much detail because I'm starting to talk to possible backers.
The system is basically a volatility breakout with some short term trend and volume filters. The real key to the system is the choice of stocks to follow. I would read up on this by checking out The StockBee blog.
http://stockbee.blogspot.com/2007/01/how-to-beat-market-for-125-per-week_11.html
Post a Comment