Stu,
I believe it's just a different school of thought with regard to the consequences of High Poles (HP) between DWA and Chartcraft. With a Bear Confirmed market such as the one we're in, on Chartcraft's annotated charts, HP's and HPT's are cited with regularity as the precipitating factor when a stock makes a big top and looks like it could fall even further. Buying Climaxes are also noted quite often as well. A few stock's noted in this week's issue as having been effected by a HP/HPT are as follows: BEC, CWP, ADCT, BBY.
My perception after seeing stocks in obvious HP patterns on DWA's Idea Generator, is that DWA sometimes uses the pattern to find stocks on a pullback above the BSL and believes the stock to be a potential buy assuming other p&f criteria meet DWA's screen. I don't believe the companies view the pattern in the same way. In looking at today's group of stock ideas on DWA, ORCL and HWP are both suffering from the after effects of HP's and look to me like dicey buys at current levels. Beauty is in the eye of the beholder I guess.
Subscribe to a Chartcraft publication or two and listen to the hotline and believe me, you'll get your fill of HP warnings.
To quote Burke in his BBY commentary:
"Best Buy coming off a HPT and these are deadly when NYSE Bullish % is bearish."
JMHO, and of course, to quote Chartseer, I could very well be wrong.
Bruce |
