Peter,
I know that you do not subscribe to technical analysis [TA] of the stock market, but I will advise you FWIW that ELN completed a "key reversal day" today, which means that on exceptionally high volume it hit an intraday 52 week low, and then closed at or very near the high of the day, with exceptional daily range from the high to the low. Key reversals do not occur often, but they are one of the most reliable forecasters of outstanding short-term performance. BTW, another stock that completed a key reversal today was Tyco.
If you equate TA with voodoo, please consider the possibility that the stock market is a semi-efficient digester of known information and that simple price/volume patterns frequently occur and reoccur at turning points in investor sentiment. I have found simple pattern recognition to be a significant time-saver when research time is finite.
You might believe that TA may be subject to self-fulfilling prophesy. If so, I would not deny it. <g>
In any case, I am hoping that you might be open-minded enough to consider the ELN and TYC key reversals today as a simple case study or experiment in the potential predictive power of TA. I would suggest that if each does not advance at least 20% in price from today's close over the course of the next 2 months, then your skeptical view of TA is warranted. If, however, they do accomplish such an advance within the stated time period, I hope you will give TA another look.
Sam |
