RE: Beginners Questions
(2014-04-08, 03:02 PM)shaunattwood Wrote: Technically it's a hard call. Have we seen short term panic lows in 3DP or will there be another tidal wave of selling? Stan W would say avoid them like the plague because they are mostly below their 150 day ma's which appear to be rolling over.
They do look short term oversold below their 50 day ma's, which they will usually rally back to, but why trade against Stan's method?
I agree with shaun, the main 3D printing stocks are already in or on the verge of Stage 4, as you can see from the attached. So, with regards to the method you'd want to avoid the group or be looking to short stocks in it with the right technical patterns. Hence, the method would only suggest going long an individual stock in the group if the stock was showing an excellent technical pattern with an exceptional volume increase. But in the majority of cases the book recommends that you avoid a weakening sector on the long side completely as even stocks that do show some promise of a Stage 2 advance will often under perform stocks in other stronger sectors. So always consider the opportunity costs.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.