Switching Gears
When do I think to start looking at a change in the trend? When the stock
does the opposite of what it “should” do at an important juncture.
7-26-2002
15:41:35
SPX Corp. (SPW)
is hitting the 20-day moving average and its downtrend line after a counter
trend rally. SPW is up 5.52 to 99.50 and is carrying a
3-month relative strength rank of 19 with a downtrending ADX of 41 from
TradingMarkets.com.
The stock today is gapping higher and trading in the top of the
range. Now that it has broken its trend line, and reclaimed the 20-day moving
average, I may look to daytrade the stock to the long side, when it shows
follow through after strong closes.
Despite the fact that the setup from Friday did not pan out, it’s
OK. I know that I’m going to be wrong at the end when the trend changes.
Trading with it on the way down has more than made up for the times I am wrong at
the end.
Until tomorrow,