Thean, re it struck me that there were two days at the peak in each of the last three peaks and the next days were decisive down days. Will history repeats? Will have to wait till tomorrow to find out.
Below is the OSX chart at bigcharts.com, which I use for charting stocks and indexes. Note what a beautifully accurate indicator this is for tops especially..when the slow stochastic goes over 80, it's big-time danger zone, with imminent decline ahead.
bigcharts.com
Now I know that stochastics isn't a good indicator during a strong and steady trend, but since late Oct, stochastics has been an incredibly valuable tool for me. It had also struck me lately that when this sector declines, significant gap-downs at the open aren't uncommon in the individual stocks. I also saw yesterday that even though volume was fairly heavy in some stocks they were having trouble moving up, and some were down at mid-day Wed. MDCO in particular was trading a very heavy volume, but in a very tight range and not moving up at all, which means distribution is going on. Anyway, the gap-downs were the reason I took the plunge on Wed. And indeed, a couple of the drillers I had bought puts on moved against me in the final hour Wed.
I'm hesitant to begin celebrating, but the 25 put contracts I bought on three different drillers on Wednesday is beginning to look like it may be a very profitable trade. -VBG- I still need to close the trade though, so it's not a done deal.
Regards,
DK |
