I've had my eye on XING for some time looking for an entry and it printed a BOB formation yesterday. If market conditions are good today I think I will add it to my trading portfolio for a swing trade (4 days+).
I won't add it to the model portfolio - that one is fixed with the 12 stocks I shared yesterday. Of those I'm considering adding a position in PAAS to my trading portfolio today as well.
Not an invitation to speculate - just some thoughts I'm willing to share.
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3 comments:
How well does technical analysis work after a melt-down like we've had this week? Won't the indicators be a little screwy for awhile?
Yes they will for a bit - but BOB is a trader's observation more than technical analysis. I'm looking at the lows of the stocks and the volume associated with them and making assessments of how traders feel about this stock vs another based on that pattern. If you have a screening capability to run against this pattern you will notice that there really weren't that many that show a blow-off bottom yesterday. It isn't rare but it is unusual which is one of the reasons why I'm so hard over on the rules. A stock doesn't have to show a BOB to go up but those that do generally do go up.
Thankyou for your comment.
Fine stuff
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