Curious what names you are seeing that have had shakeouts but held support?
I am finding it hard to believe the S&P will just break down here from a
widely publicized head-and-shoulders pattern, it's just too obvious. So a
rally here would not surprise me, though the market is not cooperating this
morning.
Still, I see lots of 50-day breakdowns and head-and-shoulders patterns on
various stocks, certainly not a reason to jump in long.
From: canslim-bounces@???
[mailto:canslim-bounces@???] On Behalf Of Gennady
Kupershteyn
Sent: Wednesday, July 08, 2009 9:44 PM
To: Gennady Kupershteyn
Subject: [CANSLIM] Time To Weed Back In
Today was a scary day if you were long or thinking of going long. But days
like today present buying opportunities especially considering the action of
the leaders since we fell into this correction on June 11th.
Leaders continue to hold key support areas. This is extremely positive
considering we are down 8%+ on all the indexes at today's low.
We had a scary shakeout in every leader today, while the general market
managed to hold steady in heavy volume. The pattern for this correction has
been the exact opposite. While indexes were getting hit leaders held.
Today's action is typical for shakeouts.
There have been, and still are, many early entry opportunities if this rally
is to resume. The best plan of action is to weed back in here. Don't wait
too long, as the risk increases as stocks move away from their pullbacks.
Reason, too much volatility around breakouts makes it very difficult to
hold.
Everything I look at at, points to a resumption of this rally. If I'm
wrong, the risk is not high right here.
Good Luck
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