Swing OUT of CWLCE after 'E' comes off - Do NOT Hesitate!!
PURELY TECHNICAL TRADING THE "E" EVENT WITH CWLC / CWLCE
DO NOT FAIL TO SELL CWLC AFTER THE "E" COMES OFF < < <
WHY I BOUGHT (7 Reasons):
1) THE MAIN REASON: THE "E" EVENT Stocks which fail to report to the SEC on time get tagged with an "E" on their ticker to show that they are late with their filings and not currently in compliance. The company is usually simply a day or two late filing. Meanwhile, the PPS crashes. creating a buying opportunity for swing traders. As soon as the company files the financial report, the "E" comes off the ticker.
THERE IS ALMOST ALWAYS A "POP" OR RALLY ATTEMPT AFTER THE "E" COMES OFF THE TICKER
TECHNICAL ANALYSIS INDICATING A LOW OR "BUY" IMHO: 2) RSO BELOW 30 - DUE FOR A RALLY 3) ADX WIDEST EVER WITH RED LINE ON TOP (indicating a LOW, usually a BUY signal) http://tinyurl.com/42szw
It would be much safer to wait for a reversal pattern to appear on the chart before thinking about holding CWLC long term. Sure, you might "miss" the bottom, but you would not "miss" any of your basis due to a lo$$ from dontinued down MO either.
2) TERMINAL DOWNWARD MOMENTUM A year ago, Ayg 2003, INDW was @ .005 and rocketed all fall to $.24 just before Christmas (Merry Christmas!) THEN RETRACED 100% STARTING JAN 2004
http://stockcharts.com/gallery?GLBT -------------------------------------------------------------------- Remember IDNW lAST fall 2003 - before it bacame GLBT ? IDNW got tagged with an "E" & i BOUGHT then popped after the "E" came off and I SOLD - THEN it became GLBT and proceeded to TANK down to a HALF CENT
NOte the ONLY white candle in MArch 2004. THAT was the pop after the "E" came off, before proceeding down
IF IT WERE NOT FOR THE ABOVE INSIDER SELLING I WOULD BE INCLINED TO STICK AROUND AND SEE IF IT CAN SUSTAIN A RALLY. I MAY EVEN WAIT TILL THE SECOND DAY AFTER THE "E" COMES OFF BEFORE SELLING - BUT THE RISK THERE IS MISSING ANY GAIN AND BEING LUCKY TO BREAK EVEN AS IT CRASHED BACK DOWN INTO THE PATTERN OF DOWN MO.
4) Sept-10-2004 Bearish Harami http://tinyurl.com/634of (SEE RED CANDLE FOLLOWING THE PRECEDING WHITE CANDLE STICK IN CHART)
6) the broader markets appear ready to go lower in the short term, which will not help a long position in anything
see "QQQ" & DIA" @ http://stock100.com/ although its not relly reliable, I would certainly feel better if it showed both going up! --------------------------------------------------------------
I hope this gives some of the newbie fans some insight into "SWING TRADING" for FUN and FREE MONEY !!
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