Head-fake Friday
On Friday, I did my chart of the day on Coastal Gp mid-morning and then
headed out to Vegas for TradingMarkets2000.
I said that Coastal Gp
(
CGP |
Quote |
Chart |
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PowerRating) was in the process of breaking out of a
six-week triangle off a bounce from its 50-day moving average. This occurs in
the context of an uptrend that has been in place since the beginning of 2000. A
nice setup.
Little did I know that in spite of the massive rally Friday, that CGP was
destined to pullback and fail in its Friday breakout attempt.
Ironically, one of the many strong themes of the Sunday’s Cooper/Haggery
session was to watch for these second-entry opportunties that come off real
moves that occur shortly after head-fakes.
I could not ask for a better illustration of this principle in today’s CGP
action.
Friday was the fakeout. Today was the breakout. As you can see, they’re
always looking to shake out the many chartists who see an obvious pattern like
this. Once they’re out, the path is cleared for a real move. We have that today.
Second-entry city, man.
Till Tuesday,