Captain: In one of your posts you said that CPQ would fall to $27 by Friday. It got there intraday quicker than that. Good call. Do you think it has bottomed?
Tom Dorsey predicted a breakout to the upside if it breached $32 resistance. He said it would be in the mid $40's quicker than most people realised. Well it breached $32 and then failed to break-out. He puts this down to a "false sell-off", or some such thing. He predicted $26 was bottom of the range and testing of that would be "a double bottom break" (which is the kind of thing they did dancing the Charleston when the Tommy Dorsey band was in its hay-day). Give him his due, though, it did bounce of $26 intraday. Now Tom Dorsey says that if it successfully breaches $26 support it will only be because of the market. He goes on to say if it does breach $26 it will recover. Clear?
With linguistic flexibility like this no wonder TA is infallible.
He could have said, if it goes up, it will continue going up, unless it doesn't, in which case it will go down, then go up again, but if it doesn't it will go down and then go up again, unless it doesn't .......ad infinitum. Any events such as earnings, performance, fundamentals, cc, market dynamics are irrelevant and if they interfere with the technical movements, then they are false. |
