Reversal Patterns Are Heating Up
Recent stocks in our
Nightly Report have been paying big
dividends. The big trades have been in the reversal patterns. Typically, when I
see my bottom line being positively affected by reversal trades and not my
trending trades it’s a sign for a market shift or major sector rotations
occurring. Below are a few of the recent trades that have been filtering through
my nightly report. Yes, I realize showing them to you know does you no good
other than continuing to see these patterns and to see the potential of these
patterns.
On a sector alert tonight take a peak at the weekly Oil
Service HOLDRs (OIH). This ETF has sold off for 7 weeks now for a 20% decline.
Check out the previous decline in this longer term uptrending ETF. Both previous
corrective declines lasted 8 weeks and between 17 and 20% declines as well. I
wouldn’t be surprised to see a reversal in this sector start to develop in the
next week.
Have a great night!
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“Fibonacci
for the Active Trader is by far one of the best trading books to come along in a
long time. It deals with specifics in market entry, exits, and stop placement in
a simple, understandable approach. This is a jewel-defined trading plan that
will benefit both the long-term and short-term stock trader. Thank you for
sharing your trading experience and method. Your trading book is one of the best
I’ve read out of 50 and very enjoyable …â€
–Daniel G.