Taking Joy In Failure
When a bullish pattern fails, it is quite often a signal that something is
wrong. Jeff Cooper has said on many occasions “fast moves many times come
from failed patterns. ” Emulex
(
EMLX |
Quote |
Chart |
News |
PowerRating), profiled earlier in the Insights
From The War Room, could be showing us just how true this bromide
may be.
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13:22:38
 Emulex (EMLX)
is exhibiting a momentum gap to the downside out of a failed inverted head and
shoulders pattern. EMLX is currently down 4.45 to 33.85 and has a 3-month
relative strength rating of 80 from TradingMarkets.com.
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Despite its relative strength of 80 over the past three months,
the stock has dropped 20% from the tip of the right shoulder – in the past two
days. Two successive down gaps are also casting aspersions on the character of
EMLX.
Use the Insights From The War Room and
track the stocks profiled for potential successes, but also take note of the
failures. You may be uncovering gold in what to others appears to be trash.
Until tomorrow,
Duke