chartwatch

There's quite a bit of raw emotion being expressed on the EXT forum right now :) Different opinions on where the beast is going atm. In truth, I don't think anyone rightly knows. EXT looks overbought and if you look at the chart below you will see that it nudged 3 SD above the 20 day MA line on Friday. And if you look back on the last few months performance you will see that it has on previous occasions run along at the 3 SD level for a few days at a time before staging a modest pullback. So who's to say that EXT won't defy the naysayers yet again over the next few days, despite it going parabolic - sort of.

Now, here's something attributed to Jesse Livermore that I rather like:

"The public ought always to keep in mind the elementals of stock trading. When a stock is going up no elaborate explanation is needed as to why it is going up. It takes continuous buying to make a stock keep on going up. As long as it does so, with only small and natural reactions from time to time, it is a pretty safe proposition to trail along with it. But if after a long steady rise a stock turns and gradually begins to go down, with only occasional small rallies, it is obvious that the line of least resistance has changed from upward to downward. Such being the case why should any one ask for explanations? There are probably very good reasons why it should go down, but these reasons are known only to a few people who either keep those reasons to themselves, or else actually tell the public that the stock is cheap. The nature of the game as it is played is such that the public should realise that the truth cannot be told by the few who know."


Good luck to all holders!