Is ARD lining up for a Hershey move? Hit initial DU, with only a very slight gap up, its moving up, just waiting for slow Stoch to get past 80 for the trigger... or am I reading this wrong? Thanks!
No. You correctly observed the Hershey Phenomenon taking place this morning. However, we do not yet know if this signal will turn out to be profitable, or simply, another False (Failed) Break Out (FBO) in the making. Personally, I would have preferred a more robust increase in volume (read: stronger signal), but time will tell. As I really do not like trading on the AMEX, I did not take this signal. For a visual representation of the Dry Up Concept, see the attached chart. We see Price sitting in a flat range over the last few days (red circle) accompanied by relatively low (and flat) volume levels (pink line). Once price broke above the 20 SMA (thick blue line) and above the intermediate term down channel (thin orange lines and orange arrow), we had our signal to enter long. Notice also the continued attempts by price to remain within the short term up channel (thin green lines). - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1061323>
I had ARD circled on my list of stocks to watch this morning as a possible DU candidate, not because of the actual volume numbers, but for the reasons outlined in my above post. ARD appeared to follow the 'spirit' of the Dry Up rule, but not the 'letter of the law' so to speak. - Spydertrader
mkt is dryin' up all over da place...all moves are sudden'n'unexpected, r/r is just atrocious, especially for longs, since bias is towards fadin' here.....welcome to a beautiful unprofitable summer. r0r
Nah. While summer traditionally brings lowered volatility, Hershey stocks traditionally continue to provide profits year round. Based on the results from previous summers, I anticipate continued performance in the coming summer months. - Spydertrader