Lisa,
Please read Eric's Chartcraft Report and understand that their is an excessive amount of bullishness out there in the marketplace:
exchange2000.com
Don Hays of Wheat First Union, a market veteran and a fellow p&fer I believe, relies on Chartcraft data for lots of his analysis. He always cites the indicators commonly discussed on this thread in his market analysis. Hays likens the current situation to a wearing away of the market's shock absorbers, and, as such, events large or small can cause a market hiccup, and, a potential decline of 25% in individual stocks. He suggest tight 10% stops if you are unable to ride out a 25% correction in individual stocks. This correction might have nothing to do with the fundamental business of a particular company. You saw first hand what a lousy market can do to individual stocks last spring/summer.
Yes, NT did have a High Pole at $51. however, the Telephone sector just reversed up to Bull Confirmed once again and the stock has bullish RS in X's. The Short Term Uptrend Line (STUL) at $46 should prove to be the bottom of this correction. The lack of trendline support, something I've pointed out to you before, Lisa, is something you must contend with owning this stock. A STUL is not a rock solid support line. In the recent past, buying support has come into the stock at $48, $47 and $43, so you may look for those levels to possibly attract buyers once again if reached.
Good luck to you and I hope I've been of some small help.
Bruce |
