GT continues higher while the market is selling off. We see another high volume, wide range bar this week indicating that professional money is buying here. This isn't your retail trader. Most retail traders don't buy break outs. They love to bottom fish. They love to buy pull backs. They operate from a position of weakness. Sometimes it works, but the most explosive moves come from the stocks that are being driven by the professional trader and GT qualifies here.
I started buying GT last July and in 7 months, that position is up over 150% already.
The chart below shows my entries and the percentages have been rounded off slightly.
When you look at the chart above, most people who believe in the buy low, sell high theory, would have thought GT was too high at $13.00, certainly too high at $16.00. I ask, too high in relation to what?
If price moves up 115% or 70% after your entry, in my opinion, you bought low. It didn't look low at the time, but that's because most people live in the past. They live on the left hand side of the chart. They have a difficult time envisioning the right hand side of the chart.
When you see high volume, wide range bars that close near their high of the day, odds are, prices are going higher. We must learn to take advantage of that. |
