Larry,
I guess that's the beauty of the charts. You can look at my COF chart and see a future swan, and all I see is the current ugly duckling. You see it "trying to find support" on the 50 DMA, and I see it banging pretty hard against it. The last time it banged through the 50 DMA (off the chart, unfortunately) it spent a looooong time in purgatory.
I don't think the WM is showing a "tradeable" bottom, look at the other indicators there (CCI, RSI). Money is flowing out (CMF), the stock is in distribution, stochastics are pointed straight down and MACD just crossed against you (if you're long).
Short term, long term, it really doesn't make a difference in my view. This stock wants to go down, the chart says so, and it will only take one more hard push to get it there (if I'm correct).
As for the higher highs and higher lows you pointed out, I think they're pretty much history now. If you want to take a long term perspective on this from a long point of view, I'd do it by waiting and buying at 41 or 36. I think you'll get it without the pain of red numbers in your portfolio. I could be wrong, though, I've been wrong before.
(But, hey, isn't GS a nice little short here?)
Kb |
