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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude
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To: Upstock who wrote (19747)7/23/1998 5:02:00 AM
From: Doug R  Read Replies (4) of 79274
 
Al.

I have been ruminating over CADE's activity long and hard. I have often seen that when technical buy signals don't pan out, it is time to become very cautious. The volume and the price activity is more than a bit unsettling although all technical trends (as opposed to immediate signals) are very much intact. It seems to be the prudent course to set serious protective mental stops based on trendlines. The lows along 2/5 and 3/19/98 establish the current uptrend. The current value of that line is well below CADE's price at this time. There is however the point I make at my seminar about the progression of accelerating trend lines in that the most viable accelerations only touch any significant line twice. The prevailing literature leads one to believe that the more a trendline is tested, the stronger it becomes...this is actually not the case. The best stocks only touch a significant trendline twice. This establishes the parabolic nature of any truly exceptional stock's rise. CADE has accelerated along this formula consistently so at this point it's not easy to say how CADE will react to today's activity but the volume and the price activity together warrants caution but there is still plenty of room for CADE to establish another acceleration. Such is the nature of TA. As per my last post re VCR, I have absolutely no sell signals but it appears that patience is necessary over the long term...and CADE is definitely a long term stock.

Doug R
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