"I loved the gap on the 25th, it was small (1/4) but like I said ,a good sign. What disturbs me is the key reversal day on the 26th...... ....a Key reversal day, whatever you want to call it, it ain't good."
Jeffery: My understanding is that in a "key reversal" the close is below the previous day's low, not the previous day's close. I believe a reversal happened on the 26th, but it is was only a short-term blowoff starting the recent pullback which should stop around 20.25 to 19.75 tomorrow or Monday (more probably tomorrow). The upward trend will continue again on Tuesday for another approx. 12 points or so in the next two to three weeks.
IMO this stock trades less like a stock and more like soybeans in the heat of the summer (at least for now). As far as filling the gap from the 25th, IMO gaps aren't as relevant as they once were. With aftermarket and international trading at all hours of the day, a gap really isn't a gap. In the past a gap probably represented one or more forces including: News after the close, or unsatisfied buying or selling pressure which is pent up from the previous day. Now it seems that overnight and after-hour trades are like pressure relief valves that release the overnight pressure and make large, meaningful gaps much more rare. What's my point? I'm not sure, just thought I'd throw my two cents worth in.
My prediction, by the way, is more like a guess. Please don't take it seriously unless I am right!:)
Michael Rick
Right and proud of it! |
