Why You Need To Stay In Tune With The Big Picture
Editor’s note:
The following article originally appeared on August 8, 2003.
Brice
The greatest tool that we have in our
arsenal of trading tools is within ourselves. By really listening to the
market you can quite often hear the music well before the rest of the crowd.
I started ‘harping’ on OmniVision
(
OVTI |
Quote |
Chart |
News |
PowerRating)
as a potential short in yesterday’s trade in TMs
Chat. The stock had made my nightly list of strong stocks the prior evening,
but after establishing 52-Week Highs, OVTI started to act like a whole lot of
recent high flyers that have recently found themselves crash landing after
defying gravity for so long.
Today, the issue continued to look interesting as
it failed to rally early on as the broader indices struggled to push onwards in
their respective reversals off of technical supports. If you were listening,
this action produced an even clearer technical picture that was suggesting a
possible change of tune for our friend OmniVision.
10:17:45
Intraday
Setup Alert
OmniVision (OVTI),
from the Nightly Daytraders
Report has continued to demonstrate relative weakness after
establishing 52-Week Highs yesterday morning. The issue has put in an
extended mid level Slim
Jim, approximately 1 pt. wide. With today’s trade, OVTI has carved an even
narrower consolidation within the larger pattern as it has failed to participate
in the early upside trade. With the stock down .17 at 41.82, shorts might be
considered below either the smaller pattern supports of 41.72, or thru the
larger formation at 41.18.
The stock’s melody had definitely changed. By
listening closely, and being in tune with the big picture, you were able to ‘see
red’, long before the ‘crowded house’ that followed in your footsteps.
Chris Tyler