Saturday, February 13, 2016

brk




the first signal was the first day in Ocober ... a spindly red bar breakout, in a flag directly off a dip ... and heel ... just like the last example, and they both have produced ... now ... dips. plus, the ... well, you buy at the breakout level. it broke out from a pattern that formed after the red bar in mid September, and from a three bar pattern that created a third bottom after and including that red bar, and the day after the breakout it dipped into that three bar pattern, thus producing a buy on the return to the breakout level. but the rally that followed stalled out. it remained in break-even territory for months, then dipped.

it just broke out again, right at the end of January. it's building a base, here. i wrote about buying dips ... about if you bought a signal and then it dips, and flashes more signals at lower prices, buying more, buying again ... a dangerous tactic if you don't know what you're doing ... but i wonder what the fundamentals are like. oh my God, it's Berkshire! the most fundamentally sound company in existence! well, it's marked down 10%, and this green marubozu scan seems to highlight fundamentally strong companies ... it could be one way to find them.

No comments:

Post a Comment