Larry, dumb TA question: do you have any general rules of thumb about the length of time an issue would fail to penetrate some of the envelopes on the upside of the 50dma before "bear market" would be confirmed?
I use 20-day Bollinger Bands on the dailies and add in extra bands @ 1 std. Don't know how well they'd correspond to envelopes, but starting mid-week of the week of the 11th, practically every large-cap chip mfgr. and gear player crossed the 20-day SMA and over the next 19 sessions rode the lower band down and kept hitting resistance @ the lower band drawn @ 1 std.
LSI seemed to be the only one that bucked the trend and made a successful cross (on the Kurlak upgrade). Fell short of penetrating the upper band then tested the 20-day SMA, but managed to close above it Friday.
Actually, no, MU crossed the 20SMA on the 9th, but failed to hold.
Okay, come to think of it, that was a weekly HH (and the high for June, although since it hit a monthly LL on the 2nd, I guess you'd say the monthly trend is continued) - so is there something to be said for recognizing that a stock crossed the 20-day SMA from the downside AND made a weekly higher high, but then failed?
Just thinking out loud here looking at my sheets.
See this is what happens when a formerly "FA-only" guy breaks down and finally buys a TA package (WOW Deluxe) <g>
Good trading,
Tom |
