John, Re: Trendy Things
Wow! What a bloody day! I was fully invested, working on a tax return and not paying attention to the Market, only to look up and find myself soaked in blood. Yuk.
The CPQ calls were not related to BAMBI. BAMBI only looks at the DJIA stocks. Last week BAMBI was trying to tell me that all was not well in the land of Oz, and I chose to believe otherwise -- Foolish me.
CPQ is what I refer to as a Big Boyz stock. One of the 85 companies that trade on our exchanges that at the end of April or May had a market cap of more than $40B or were in the DJIA. These 85 companies account for more than 40% of the equity in the markets.
Thru May and June, I spendt hundreds of hours drawing lines on daily and weekly charts to try to ascertain the trading channels for the various stocks. I went live with the concept the last week of June, and started tracking performance July 1.
It was a good time to go live as the market was very forgiving to some of my mistakes. Alas, the last couple of weeks the market has not only not been forgiving, it's been down right brutal. I have not updated the portfolio for its performance today, but I may well have gone from being up substantially to going negative.
I showed both the daily and weekly channels on CPQ to be 29 on the downside. On the upside, the daily was in a breakout mode, but the weekly had a down trend coming in at 34. CPQ honored its trend very well with a low for the week of 29 3/8 and a high of 34 1/8.
Musing from the Swamp
Berney |
