The psychology of this down-trend leg is quite fascinating.We...

The psychology of this down-trend leg is quite fascinating.

We haven't had the washout leg that many TA'er picking away at the sides were waiting for. (And baiting us about) Perhaps it was the confidence expressed by DrT, perhaps it was the bullishness of the market in the US, perhaps it's because we all expect significant FA news within a few months, perhaps it's because there was no formal raise and the (brilliant) bonus option concept did the trick.

(Last time around at the $3 raise we all praised DrT and the BoD (I did at the time) for the timing of the raise just prior to (general) markets going into a risk-off phase when money suddenly stopped being printed and interest rates increased regularly for months.

The problem that time was Race never achieved much (FA wise) to advance towards a significant share price rise against the back-drop of BG selling and collapsing biotechs etc.)

So perhaps we've dodged a bullet (this time) if markets allow. It certainly feels right and the RAC chart is starting to cross over MACD's, MA's will follow, and when news comes it will create more green candlesticks which hopefully have solid tops, not spikey ones like Fridays close.

This time the signal wasn't a washout ... it was the doji from a week or so ago that signalled doubt, then Tuesday 6th when nearly no trades happened, volume simple stalled so the selling energy for lower simply ran out.

People have sold all the bad news, now it's a buyers market. There's no rush but there may be one. Perhaps someone decided it was time on Friday, they have waited enough! Or perhaps the support was strategic (to avoid the wash-out).

It doesn't matter ... the seagulls will be circling as they've seen one lucky one have a feed outside the fish and chip shop so they're starting to think it must be dinner time and their feeding frenzy can't be far away. If there's a small amount of further feeding ... their activity will attract more and more seagulls and we'll have ourselves an uptrend.

Don't throw away your chips or you'll attract the seagulls! They're watching now.