Agree Tulip. You could really see this coming. Momentum had stalled and the numbers on the sell side had built up considerably so it wasn't all that surprising that there was a bit of a sell-off today. However, the sp bounced back strongly after touching 9.5c. I think the sp will consolidate and trade in that 10-12c range until we get a major announcement. Consolidation at this level isn't such a bad thing. Actually I read something yesterday from Port Phillip Insider that consolidation at new highs is often a prelude to further moves up. Here's the email (hopefully they don't mind me reprinting it here) :
Conventional wisdom dictates that you buy a stock when it is trading at a LOW…and then sell it when it goes higher. Right?
Problem is: Stocks are not like leather jackets.
If a leather jacket is $400 in December and you see it marked down to $250 in July, you could rightly assume that you’re getting a bargain.
Stocks are different.
You might watch a stock range between $15 and $40 over the course of a year, and then see it trading at $16, and assume it’s cheap.
Great value?
That’s actually almost never the case.
The opposite principle applies to
T.I.M.E.D. stocks.
You never try to target the bottom.
Don’t even try!
You wait until a stock is breaking upward.
THEN you buy.
The most astute traders know that the perfect time to buy is during a period of consolidation…after a stock has just made a new high.
Seems wrong, doesn’t it?
But that is the essence of T.I.M.E.D. stock trading.
Phil and his team look for patterns of accumulation — and then a trigger — to get into any one stock.
High.
High.
BUY.
