Stocks that don't go down with the market have tremendous relative strength (RS), and some turn into leaders of the next up move in the market. But they don't necessarily start going up right after a pause in the fall. I'll prove this.
1/n
1/n
New 3-month high / New 3-month low (No. of stocks)
27th Feb: 23 / 595
28th Feb: 25 / 405
03 Mar: 48 / 58
06 Mar: 68 / 52
Source: SPIDER
2/n
27th Feb: 23 / 595
28th Feb: 25 / 405
03 Mar: 48 / 58
06 Mar: 68 / 52
Source: SPIDER
2/n
What does it say?
A massive drop in the number of stocks making new 3-month lows, but a very little rise in stocks sitting at the highs, clearly indicating where the money flowed. This 5-day rally in the market starting from the 28th Feb low
3/n
A massive drop in the number of stocks making new 3-month lows, but a very little rise in stocks sitting at the highs, clearly indicating where the money flowed. This 5-day rally in the market starting from the 28th Feb low
3/n
is because of the 'reversal' in oversold stocks with some seeing a 40% rise in price.
If you still don't trade falling knives because you've read so much bad about it, then thank you for not making it crowded and letting the pros make easy money.
#BroTip
If you still don't trade falling knives because you've read so much bad about it, then thank you for not making it crowded and letting the pros make easy money.
#BroTip
Loading suggestions...