When A Buy Turns Into ‘Bye’
I don’t mind rumors to help
move a stock out of a sound technical pattern. But
personally speaking, I like to proceed with caution as I’m not one to ‘buy the
hype.’
09:32:36
Early
Relative Strength
From the
Intermediate Term Report, Quest Software (QSFT)
is up .11 at 12.67. The stock is closing in on handle pivots within a
3-month Cup and handle of 12.80.
…about an hour after the proper buy point based
on the daily chart, a very convenient rumor comes across the tape that QSFT is
now the subject of a potential buyout. Very exciting news indeed!!! But as
Triumph the Insult Dog would say, ‘so that I can poop on it.’
It was pointed out in our chat room shortly
thereafter, while the stock was still rising, that personally, I was much less
enthusiastic about the short-term prospects of this breakout.
Â
Â
Triumph would have done well
today with his trademark slogan and saying ‘BYE’, instead of ‘BUY.’Â
Chris Tyler
Â