Choppy, But Flagging
- Posted by UpsideTrader
- on September 19th, 2012
After a big run up, it’s normal for the tape to go sideways. That usually creates a flag pattern, which is what you see above. Normally, these are very bullish formations as you know.
My own theory, as we push forward to the end of the month and quarter, is for a move higher. I believe this may happen because funds are under invested. This goes for both mutual and hedge funds.
There are still more non believers than believers in this market, and many are still “waiting for the pullback” that doesn’t come to buy in. This usually adds to performance anxiety, so the “chase” may begin.
We took a 2/3 profit on SCLN today for a quick 17%. Note that FIO and AOL also triggered today. Please go to the P&L tab on the blog every night, so you can stay current with stops and new entries.
See you guys on the chat room in the morning.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus