ripe for shorting?, page-28

hi kiddies,

after a romantic evening with Mr. Ed, I paused to reflect on the BHP chart in order to glean any lessons from the events of the past few days...



IMO, three salient points leap out of the chart:

1. BHP gapped up on open above $10.37 [my first "cap" for shorting] and then gapped up on open again above $10.64 [my second "cap" for shorting]. Each of these two breaches indicated that the assessments from which they were derived were flawed. Ie, time to abandon short positions based on those "caps". Damn gaps up hurt, though.

2. The blue Accumulation / Distribution line has trended strongly down right through BHP's recent ascent. BHP has to correct sooner or later. If / when it does, it now has a couple of gaps to take out - all the way back down to $10.35.

3. The terminal interpretation of the structure up from from $8.30 on 3 July 2003 has been torpedoed by the breach of $10.64. BHP might correct now, but that's unlikely to get much below $10.30 before it trends higher again.

In summary, time to step back and reassess BHP's behaviour. No point trying to fly blind...

Regards,

Ultrafart.