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TO all: I have posted the DAILY CHART of PRGO with a question for the whole MS community. Does the most recent 17.8% V-shaped consolidation effectively reset the base count as it undercuts the low of the prior base (12% consolidation (flat base?) in green? By my humble count, this "flat" area of consolidation (in green) was a third stage base. Any and all thoughts greatly appreciated. Missed this one before and would love to get a base reset. Brad
Nice analysis Brad. This one might launch to new highs with all that volume at the 50day. Still, I'm in cash at the moment due to all the volatility (see QQQ in Jan of 2000) I'd prefer to see this one test this thrust and tighten up a bit with very low volume before I bought a subsequent high volume launch.
Yes, you're correct in stating that when a chart has movement that undercuts the low of a previous base, that, that base count does reset.
We're in a unique state currently, while Bull and Bear are not used in the vocabulary of Market Direction, this correction was enough to equate to the Bear. That said; All bases reset.
-I hope this helps,
Abe & Tom, Thanks for the follow up. Tom, you said the correction equates to a bear--is that based on NYSE's 20% correction as compared with 17%, or so, on the other indices? With all of the third, fourth, and later bases we have been seeing, an across the board base reset would be a sweet treat for summer! Brad
The count has reset but there is no chart pattern to trade off of. Ask yourself what pattern this would be and proceed from there. IBD has talked recently about people buying leaders that they have "missed" on large breaks. But the patterns are late stage and if a real bear market is getting underway investors will not be getting the bargain they perceived. Look at LULU on the weekly for instance. A sharp break down and a sharp break up, just like PRGO. How can you trade a pattern like that? There is nothing there to trade. It is too dangerous.
The treat was put in.
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