Anatomy Of A Top
Tenet Healthcare had been one of the
stalwart stocks in the market over the past year. Recently, it has acted as well
as the Democratic party. For all of you long-term holders…listen up.
As you can see, the stock held up very well until Oct. 27. This was the day
everything changed. Very simply, please notice how the stock broke below both
50- and 200-day averages on 3x average volume. That is not Aunt Mary and Uncle
Bob selling. This is simply your clue to “SELL, SELL”…yes “SELL.” SELL is not
a four-letter word. It is a good word. It gets you out of trouble. It keeps you
from having to have garage sales to cover losses.
Now, I know what you are thinking. Hey dude, the stock did the same thing on
July 22 and came back up. Hey, you are right…with one difference. In July, the
market was plunging and taking everything down. This time, the stock was going
on its own.
Motto of the story: It is not the ones that
come back up that bury you, it is the ones that keep going down that do the job.
All the bad news is NOW coming out on
(
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PowerRating)…AFTER the drop.
You must use technical analysis when following stocks. If you don’t…don’t
trade or invest. I cannot say this any louder or stronger.
Those who still own
(
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Chart |
News |
PowerRating) are now in the soup. Yes, your brokers are giving you
the famous line…”Don’t worry, everything is OK, it is a good company.” My
advice…fire that broker. It is not OK when you own a stock that goes
from $53 to $15.
Gary
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