Re: PQ ... There is a significant difference between the price action in NBR and the price action in PQ, in the example you provided. You are focusing on the 40 week moving average and that's the last thing I was focusing on.
I was focusing on price dropping below a swing low and, the price movement came on incredible volume. It's that selling volume that had priority with the NBR pull back, not the fact that price was dropping below the 40 week moving average.
Price dropping below the 40 week moving average, given the amount of volume that preceded the move, merely confirmed that it was time to sell.
The PQ price drop below the 40 week moving average, back in June, was on weak volume. The price drop, at that time, wasn't about professional or institutional selling, it was about buyers being on strike.
As price came down to longer term support, the buyers showed up and the move was more powerful because of the lack of professional selling.
>>> What other indicator --if any-- was giving a "HOLD" signal at the time? <<<
None.
I wouldn't have been holding the stock at that time. There was nothing in the charts suggesting I should even be in the trade.
A buy signal appeared within days of hitting the low, but that doesn't help us now.
>>> Some people saying is a value play based on cash flow -etc, worth 13-14 bucks. I would not touch it, would you? <<<
Nope. I wouldn't touch it at this time.
Why tie up funds in a stock that is under performing at this time? There are other stocks that look like they are on the verge of breaking out. That's where the money should go. Time is money!
dabum |
