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A support line that has been in place since the March of 2009 lows is now breaking at (2)!
Game Plan…We are attempting to score on defense by owning PSQ. A break of such key support, usually is followed by lower prices. Will see if Apple can break the normal price trend!
Gary… I attempt to look for relative strength (owning silver over gold the past month is a strength example, as gold is flat over the past month and SLV is up 15%) and I attempt to find relative weakness, one market falling faster or looking weaker. The pattern in the NDX Gary looked weaker to me than the DJIA/SPX. Time will tell if this idea is true. So far since we looked to score on defense in the NDX, it is down more than the DJIA/SPX. IF PSQ works well will scoring on defense in the DJIA/SPY work too? Yes!
Chris,
Playing defense seems to be working well although I am curious as to why you have only looked at the NDX and not other plays like SPX or the DJIA.
BTW – thanks for the Premium Member email the other day on the risks it helped tip me in the direction of lighting up on some of my long positions. Which so far has been wise.
Thanks
Gary
Chris…even mighty Apple is subject to earthquakes, tsunamis, and nuclear radiation in one of its largest markets. Plus getting downrated by an analyst didn’t help. I was not in cash at the time so wanted to but could not buy the dip. I think the strongest influence on Apple was the analyst. Why, I wonder, when it is one of the widest-held stocks among supposedly brilliant hedge-funds, would they freak out over comments from some barely-known analyst?
HI Chris,
I took your suggestions and bought SLV, SMN, and DUG awile back, but I did not buy PSQ. You mentioned that a 2% stop loss is in place since NDX was at support.
Would you put new money into PSQ now or wait for support to be broken?
As always
thanks,
Aaron