Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ahh Canada - 2 out of 3 ain't bad -- Ignore unavailable to you. Want to Upgrade?

To: Davy Crockett who wrote (2789)	6/11/2001 11:52:33 PM
From: Davy Crockett	Respond to of 5144

con't... It is very educational to pull up the PnF chart that Mitch commented on in Feb 01 with the current MSFT chart. He was right on the money when discussing the possiblty of a Bull trap & the subsequent retracement of MSFT from $62.00 back down to $49.00. Interesting stuff IMO Mitch commentary stockcharts.com current MSFT chart stockcharts.com Regards, Peter

To: Davy Crockett who wrote (2789)	6/12/2001 9:39:18 PM
From: Tom McIlwain	Read Replies (1) \| Respond to of 5144

Peter: Sorry for the late reply. Thanks for the info on the P&F charts. I'll go over that in detail when I get a chance. No I missed that pullback to the 200 day ema... Interesting what do you make of it Just another positive sign. A lot of people use the 200 day ma/ema as a measure of long term trend. was that a small pennant that formed (upper trendline May 22, May 29, May 30 & lower line connect the dates May 23 & May 30? or am I seeing things? Can't make a pennant out of that any way I try. If you looked at 24, 25, 28, 29 on say a 30 or 60 minute chart you'd probably get a nice pennant formation there with a failed breakout on the 29th. On the daily chart, the 24-28 just show up as a series of inside days. the triangle on K.to. They normally resolve to the upside don't they? I wish! In a bull market, they would probably resolve to the upside most of the time and I think that's where that rumour came from, but anything can happen. A pennant is just a type of triangle by the way. The problem with such formations is that a lot of people put stops (both buy and sell) around the boundaries and these are often run by the pros before the stock makes a genuine move. You have to be careful of this. It is not at all uncommon for such things to break out to one side, make a short run and then reverse direction and make the real move in the opposite direction. If you look at ATY following May 28 you can see that the stock made a false breakout to the upside on May 29 and then fell back down. On May 30, it headed south as far as 10.66 before recovering a bit and only after that did it start to make a real continuation move to the upside. So, you had a fakeout to the upside, followed by a fakeout to the downside followed by the "real" continuation to the upside. No wonder folks like us miss moves! With regards to KHD, sorry I didn't respond to your request for comments about patterns earlier. What I noticed was that the stock made an attempt to break above resistance at $3.25 in mid May and failed to stay above, falling back below to form a horizontal channel between 3.00 and 3.25 Up to this point, the failed breakout was a negative, but the fact that stock regrouped below the 3.25 line, instead of selling off was kind of a positive. I was thinking that a second failed breakout would probably result in some selling off. Looks like that happened yesterday and the stock has dropped below 3.00 today. Those are the types of things you have to watch for, sorry I didn't get around to mentioning it sooner. But look on the bright side, now you have someone to blame. Tom