Here’s Why A Fundamental Belief Can Be Important
It doesn’t always work,
and I’ve surely missed some great moves based just on the technicals–but
every decision I make, either long or short, has some basis in a fundamental
belief that the stock is also deserving of my participation.
Case in point, Career Education
(
CECO |
Quote |
Chart |
News |
PowerRating)
made a dramatic move higher the other day on a substantial price gap lower, but
I personally wasn’t interested or upset by not being on top of the reversal play
(the volatility was also beyond my comfort zone). Some folks in fact were
probably liking their position longs in the stock as of last night’s close,
based solely on the the next session’s hammer reversal bar on the daily. Again,
no problem here in not pointing folks into CECO long–the reason being was that
I had a fundamental belief that the company was not out of the woods due to
accounting irregularities.
Hmm, now you might say that with a zone test of
44.75 – 46.55 solidly in place–I might have another fundamental belief that’s
swinging in favor of support for the stock, at least for the short-term bounce.
Chris Tyler