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Gee the market is sick and me Mr. 'find a stock to short' is going long.
I had better check my temperature. (No rectal thermometers please.)
First I must say that I have never put together any chart analysis like
this before. So this is a first.
After the guy from Perkins Capital spoke to our Metastock group last
month, this was one of the techniques he used. The key is the higher
lows trending higher even though the price keeps bumping up against the
resistence around 58. He showed us how to pick a price target.
He suggests buying at the breakout. I have watched this stock intraday
for the last week or so everyday. This stock is very strong. It just
finds an excuse to move up. If the DJIA moves up it moves up. If the
NASDAQ shows some strength it moves up. Even when the NASDAQ is down 15
points it doesn't care.
This is probable a perfect setup if we can get a few up days here on the
major indices. It is extremely overbought so it keeps the faint of heart
out of the picture. This adds to the perfectness of it.
I am in at 58 15/16 long and at 52 short. At this time, I have no
intentions of covering this short. Since the market is as bad as it is,
I will ride the long side up trading along the way. I have enough cash,
in the account with the short, for another 38 points up, if that is the
case.
Then again I could be wrong.
Harley
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