One of the characteristics of market crashes are Alex's "Fallen Angels". Those extraordinary stocks or companies that were high flyers, then collapsed in the mad rush to raise money for margin calls, then travel sideways for months redefining themselves. Instead of rising from the ashes, many just go out of business, which of course was true of numerous Internet companies long ago. Today, we have many commodity companies, like Peabody coal that are tracing out the "L" or long base. Some will start to emerge over the next few months. BTU is now OB on the weekly, but after it corrects to support, it will have a run up the right side.
Nice chart Grant. Now that it has pulled back to value, it looks reloaded for another shot up . What's your strategy? Wait for higher low &/or an uptick in MACDH or grab it on support?
ReplyDeleteThanks for the tip,
Stephen m
Sam,
ReplyDeleteI intend to wait a couple of days, at least until next week. Maybe we get lucky and it floats down toward the lower channel.
Grant
Grant,
ReplyDeleteI pulled the triger after BTU's recent reboud, as it transitioned from blue to green on the impulse. We'll see where it goes from here??
BTW the miners are getting a nice bid :) I also like how the Biotech sector is looking. Any thoughts on that?
Stephen M