| | | Whenever an important cyclical industry group or sub group is making major top or bottom, it's essential to start with monthly charts. Yup, classic top down deductive thinking.
Ex. PTEN, a key player in land drilling subsector, has logged the biggest blowout volume I've ever seen - in this sub-group -confirming it's completing a cyclical bottom.
Same washout volume shows in weekly with months of constructive base building beginning with momentum low in early April on an up week. Doesn't prove absolute price lo is in. But that it's close.in time AWA price.
Next, YTD Chart currently testing April momentum low in very lo 5s. Don't be surprised to see market makers run trader protective sell stops set too close under 5 before trampoline move to the upside.<g> It's S.T.O.P.
Finally the proto-scope hourly. Probing, probing.. <LOL>
As always, never panic or over trade if UR a LT B&H investor like me. Know the - more important - fundamentals will shape the LT charts.
Far too many, including E-Wave acolytes, get it backwards putting chart analysis first. Then, they get whip sawed out of individual stock positions. Next? It's misleading after the fact claims of success while before the fact? All we get is paraphrasing & word smithing, that it might go up & it might go down. Just take a close look at the language they use. Nuff said.
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