Way Too Many People Trade the Previous Trend

November 24, 2017-2:21 pm traderscott The Entry Points Market Blog 0

The Entry Points

We’ve liked EKSO for a long time, and liked the accumulation area since March/May, and discussed it again in premarket 2 weeks ago – the spring: EKSO another one, with numerous springs and up 50% at one point this AM from recent lows – accum, on all time frames. But when a stock rallies 5x in less than 2 weeks, it has likely expended most or all of its energy/potential. In fact, an ancillary tool I use, point and figure charting, was “projecting” $4.75 from the $1 lows. Meaning be aware of a top in that price area. The high in EKSO was 4.77.

All of this discussion with a trading buddy is below – and explains why on Tuesday 11/21, as the crowd still loved EKSO, but my view was – I “didn’t care what EKSO did, didn’t care if it went to the moon, wasn’t touching EKSO, that volume is bearish, it needs a full reset”. Meaning, I was bearish for now, and was in no way looking to get long:

 

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About traderscott 1146 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

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