Christopher, as you probably know, ADX is only one item I look at when analyzing a security...Yes, it if goes down it is a warning sign that the trend is weakening, but other indicators have to give their warnings to me as well....Take a look at THQI...The upward trendline is sitting at 22.50...The stock moved into it today, but the ADX is a lot weaker than the last attack....The RSI was 71 on the last peak, this time it is 63....Smoothed price rate of change has been moving down...Stochastic is higher at 93, but that simply is telling me here that things are getting overheated...Momentum indicator has been moving up in 4 point segments, but today less than one....My read on this stock is that it will lose at least a point tomorrow...Let's see if this analysis holds water....
Remember everyone my March 1, 1998 prediction on ITEQ....If we touch 8.00 area by that date, Lizzard will be buying me a Burger King lunch, and Jimmy will be raking my lawn...If ITEQ continues on its torrid pace, I will send 10.00 to lizzard for Burger King, and I will be polishing Jimmy's shoes...... |
