That's interesting MH, it says to me that even a break to new lows in the Nasdaq won't necessarily take RMBS out of the fifties, which is a good thing to keep in mind. It also implies, however, that $55 is possible in a good market. I don't see how that would happen, since we just tested the lows and didn't get to $55. (I would presume that breaking the lows would be considered a "bad" market.) So, someone heeding this analysis might miss re-entering the stock, expecting a return to $55 in a "good" market.
Then again, maybe my idea of strength relative to the market is too simplistic, and RMBS could, indeed, return to $55 in a good market,(say, on a day when Nintendo announced it's abandoning RDRAM). I think one would have to study this form of analysis for oneself to really have confidence in it.
wily
PS: weren't the P&F guys giving you bullish signs just before it broke down? |
