"Hey I'm dumb. Why is this good?"
because what goes up (in this case, the pps) has to come down...even if only to take a breather before the next leg up...its only a question of when this happens and how...
kblb had more than doubled in a short period of time...the technicals were topped out...the stock was essentially, overbought...under those conditions, something has to give and theres a pullback...in a stock with momentum, its considered healthy to have a nice pullback...the technicals can reset and become ready for the next move up with room to move...
often times a stock can remain more or less at the high pps with no pullback...but that means that rather than a pullback, there will be consolidation....meaning the pps will move sideways for a period of time allowing the technicals to reset...but that could last weeks or months...
kblb is being news driven...and that news is coming out consistently...kblb has momentum and that should continue...but at some point a correction has to occur...thats why i suggested a pullback was coming...a quick drop to regroup before continuing forward at the next news release...
you can fire your gun as fast as you want but at some point, you have to stop and reload...a race car can go 200 mph around the track for quite a while, but at some point you have to refuel...you can work all day and all night, but at some point, you are going to have to lie down and rest...thats just how it is...
stocks can rise and rise, but after a certain point, they will have to have a pullback or consolidate...thats just how it is...and i use t/a to tell me when that might happen...
i expected a pullback...it happened....the technicals are resetting and there will be plenty of room for the pps to move even higher next week...
thats why its all good...
