Elvis Has Left The Building
The market is often a perverse creature. Not everything comes off as it
should, and many times the market will perform “fake-out” moves to
shake out players, as it likes to leave the station with the least amount of
people on board. It is important to stay disciplined when this occurs and
remember to wait for follow through.
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Astro Power
(
APWR |
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PowerRating) has formed a flag, but has not
followed through with a breakout. However, note the undercut of the bottom of
the pattern and the subsequent reversal. This action will often shake out
nervous longs and possibly clear the way for a potential break to the upside.
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Amerada Hess
(
AHC |
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Chart |
News |
PowerRating) does not behave as it should out
of this pullback. It gives a one-day false rally and pulls back in yesterday’s
trading. This morning’s sell-off clears the remaining nervous longs, then
reverses to trigger a Trend Pivot Pullback.
Learn to spot these fake-out and shake-out moves, and you will
know to get on in the right direction, while the rest have pulled an Elvis and
left the building.
Until tomorrow,
Duke