You will recall that in one of my posts last week, I discussed the notion of stock breakouts being postponed versus cancelled. Today, with the broad market starting to consolidate, we are seeing several stocks that were set up to breakout coming into this week, only to lose the breakout setup today. However, and this is extremely important to note, just because a stock fails to break higher from a bullish setup, it does not necessarily follow that it is a high probability bearish swing trading setup. Instead, you are going to have to see shades of gray in the market, and understand that most of these stocks likely need more time. Even if they are actually reversing to the point where they will become viable shorts, then most of them will first need to experience far greater technical damage than what we are seeing today.
LULU is a pretty clear example of this phenomenon.
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Indeud, what she said.
thnx yogi
Took out my umbrella and booked a smallish loss – will revisit. Just b/c opportunity presents itself doesn’t mean my doorbell’s buzzing
good thinking