Jim Bob,
Ready to gamble going short the homeboys or the patch? Only for the real gamblers. Homeboys are still making new highs, that is, higher highs with higher lows.
Despite what a recent returnee might say about anticipate vs react, with strong trending instruments (OIH, BZH, etc.) it is a form of suicide to anticipate where a top might be. My mantra is: anticipate no tops or bottoms, react to what the public record (the chart) is saying.
I think you wrote to me in early February to ask if I thought a top might be in for TOL (then at $82). My answer then was no, my answer now is no. A top is never formed by simply a high price, or even a parabolic curve. It takes an extinguishing of buyers.
As for the patch, OIH is retracing today, much as it did 6 days ago. It wasn't the top then, and most likely it's not the top today.
Kb |
