Eric,
Thanks so much for the CMB chart. With regard to MO, the chart is a perfect illustration of a High Pole Top (HPT) and it's implications. I take it that you like the stock at lower levels or that you are a believer in the long term prospects for the stock? Horizontal support as you call it is at current levels, with the next horizontal suppport at $40 - $41.
Speaking of High Poles, it's getting that I can't even look at DWA's Idea Generator anymore as just about every stock recommended there, is currently, or has recently been, in a High pole pattern of one type or another. A quick look at yesterday's recommendations shows three stocks that have recently had HP's. I believe the philosophy of the Idea Generator is to recommend stocks on a pullback near the BSL, however, the High Pole pattern has been seemingly overlooked in the programming or in the decision making process. As you know, Eric, anyone who is a reader of Chartcraft's publications over the years, has been taught to at least recognize and pay close attention to the potential consequences of High Poles.
JMHO, and with so many other wonderful tools for p&fer's, it's easy to overlook this one minor flaw in DWA's arsenal.
Take care,
Bruce |
