Thursday, August 28, 2008


1. Pull back after black cover; fills in gap. Volume drops on the pullback signifying holding.

2. Bullish hammer--reached down to test lows; bulls pulled it back up indicating possible future price advance.

3. Huge price advance on substantial volume. Will price pull back to fill in the gap after a ~40% advance in a single day? I'd want to see it open higher tomorrow, gapping above 7.58, perhaps going on somewhat more; however, should the stock begin to form what will eventually put a black candle on the chart; I'd short. I'm guessing there will be a lot of amateur market orders to be filled at the open tomorrow, pushing the price up. More experienced swing/day traders will take money from these people, buying back at a lower price. That's my guess.

As always, follow the price; keep a stop loss; and, remember, I am not a professional.

No comments: