Brief Update
As volume goes, so go I.
This means that in the example of Radiation Therapy/RTSX, in which volume explodes higher with price, I quickly scratch the trading objective in favor of an investment objective. (One measure of the difference between trades and investments is that of time; the other, of course, is price.) Contrary to RTSX is Parker Drilling/PKD: when the originally perceived breakout is achieved by price alone -- not acccompanied by an explosive increase in volume -- then I know most likely that my original analysis is faulty, even incorrect. In situations such as this, I choose to tweak the line. What I do not do is buy the supposed breakout. Without volume, (it goes) without me.
Meanwhile, bebe/BEBE and Men's Wearhouse/MW promise to open significantly higher today, while Urban Outfitters/URBN nears a major breakout. And of course, PF Changs/PFCB performed yesterday as expected and on schedule. Red Robin Gourmet/RRGBE performs well, too. These breakouts occur masked by the weakness in the Retail Holders/RTH index, which is heavily weighted to and weighted down by WalMart/WMT and Home Depot/HD. (Of course, the restaurants are not part of the RTH index.) The homebuilders, the market's erstwhile leadership, teeter and even begin to break down; the critical question, however, is whether they break down from tops or are declines prefatory to another intermediate term base. I hope to post a lengthier update sometime this weekend.
This means that in the example of Radiation Therapy/RTSX, in which volume explodes higher with price, I quickly scratch the trading objective in favor of an investment objective. (One measure of the difference between trades and investments is that of time; the other, of course, is price.) Contrary to RTSX is Parker Drilling/PKD: when the originally perceived breakout is achieved by price alone -- not acccompanied by an explosive increase in volume -- then I know most likely that my original analysis is faulty, even incorrect. In situations such as this, I choose to tweak the line. What I do not do is buy the supposed breakout. Without volume, (it goes) without me.
Meanwhile, bebe/BEBE and Men's Wearhouse/MW promise to open significantly higher today, while Urban Outfitters/URBN nears a major breakout. And of course, PF Changs/PFCB performed yesterday as expected and on schedule. Red Robin Gourmet/RRGBE performs well, too. These breakouts occur masked by the weakness in the Retail Holders/RTH index, which is heavily weighted to and weighted down by WalMart/WMT and Home Depot/HD. (Of course, the restaurants are not part of the RTH index.) The homebuilders, the market's erstwhile leadership, teeter and even begin to break down; the critical question, however, is whether they break down from tops or are declines prefatory to another intermediate term base. I hope to post a lengthier update sometime this weekend.
posted by David M Gordon | 4:44 AM
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