The previous post on Feb 9th shared that FDP was a good gapfib candidate on the long side. Well, the very next trading day after the post it offered a perfect long entry at the open and rallied 15% to 36.00, well on the way to its gapfib target of $40.00 or +28%. What has the market done in the same time frame? It’s -3%!
Do yourself a favor and learn the gapfib theory. It’ll serve you well, nicely demonstrated by FDP.
Buy the dip offered a good entry area this past week.
More ELN charts at http://technicaltrades.net/eln.html
Read about gapfibs at http://www.technicaltrades.net/gapfibs/
This is an interesting read: http://biz.yahoo.com/zacks/080125/11256.html?.v=1
“Seven Years Ago” by Dirk Dijk, Zachs.com
“if you buy the analogy of the Financials (and Homebuilders) today being the equivalent of the Techs back in 2000-2001, we can expect to see the current bounce in the market, and particularly in the most troubled part of the market, continue for another week or two. However, then the fun is over and we suffer more pain.”
Here is the SPF chart. Target yet to be met, resistance area to short with good r/r, and a few weeks upside per the above article might well align with a short at resistance to target or +80%. And if the ‘87 lows don’t hold? By th’ powers, that would be a concern.
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