Monday, April 19, 2010

More leaders break down on heavy volume!

The charts speak for themselves. If we do not see these stocks recover with in the week. Then it is likely we are going to see something like a 5% -8% sell of in the indexes in the coming weeks.
I would love to see a quick sell of this nature with the indexes then finding support around the 50 day MA.
This will give some stocks that have been very extended a chance to form bull flags, pennants and handles and hence low risk, high reward trades.

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