IFMX Well, good old IFMX does it again! Up 3/4 or 8%
today following a pounding yesterday with reached about
400% increase in trading volume. Not all of it was downward
and out! Hence, we see another demonstration of
the "paradoxical event." I first read about that in George
Angell's book, "Inside the Day-Trading Game." George has a
reputation as a S&P Futures trader who has worked the floor.
The gist of what George was saying was that "the market was
"engineered" from within; specifically, that the real powers
of the market created selling in a typical market campaign
in order to purchase for their own accounts at favorable
prices. In short, the extremes take place everyday! The
market is raised or lowered (depending on the stock) in
order to create a selling or buying opportunity for the
knowledgeable insiders.
That is a best reason to use and follow technical indicators
because pure logic and human emotions will fog your mind and
cause you to miss the opportunities or make a big mistake.
That is why I have found more peace of mind using the WINs
approach.
Yesterday, when I was considering to cover my IFMX Feb.
contracts my emotions said, "are you crazy, IFMX is
dumping hard and heavy, it may go down to $5 at this rate!
Maybe, I should wait?" No, then my logic and experience
kicked in and took control! Don't deviate from the WINs
rules! Cover now and wait!
IFMX is about to announce earnings. No warning has been
issued. A rebound off this solid lower BB tag on the daily
chart patter is accurate. Use the BB, OBV, and RSI.
DIS clearly a textbook technical pullback helped by
the boost by the AOL/Time-Warner hype and rumors. The chart
indicated a overhead resistance point of $35 I thought.
Well, I was off by $1.00 to $36 briefly. I don't have a
crystal ball for that merger news.
Today, DIS plunges -2 9/16 or 7.1% on profit taking. I few
more days holding those LEAPs I sold and I would have made
another $800. What can I say! The goal is to ALWAYS make
some kind of profit! No one loses money making a profit I always say. :-)
ROST What a hammered down stock! Another paradoxical
event. The company is making money, increasing sales, and
what does it do! Goes lower! Figure that out! Well, ROST is
so cheap it can't go much further down. With a 14%+ growth
rate and a P/E of 8, ROST is one heck of a bargain at the
current price levels. check out the AUGs 15s @ 2 or less!
Any ROST rebound has a clear shot at $17 before the
resistance kicks in! |
