Registered: Dec 1999
05-24-12 09:33 PM
Well this was clearly a case where the bulls wanted it more than the bears.
While the technical pattern yielded some (depending on where you shorted) gains after the triple top, the extreme oversold conditions were a buying opportunity. I had an inkling that big afternoon spike move might occur again today, since the same thing happened yesterday. But the triple top was a conflicting signal so probably better to be cautious and stay on the sideline.
McMillan believes we rally to the 20 EMA. With a move like today, looks like it's quite possible. It's a good bet there are a lot of traders thinking the same thing.
McMillan: Stocks are severely oversold
This was a clear case where you need to have good money management when trading TA. If you shorted and had some gains, it was good idea to have your (mental/real) stoploss in place, either for breakeven or a small loss (or small gain, depending on good a trader you are)