Hi-P, a stock that used to trend very nicely and aggressively started to have more and more breakdowns lately. Every growth will come to an end one day and there is no surprise for Hi-P too. Stock don't move in one linear fashion no matter how bullish or how good the news is and hence by studying Hi-P chart, it revealed that towards the market height, there was super good news with support from good news in Apple where the Big Boys have unloaded and locked in profits there.
From there on, the chart showed some signs of slow buying, congestion and followed by no follow through of trying to break the all time high. The stock then sunk into deep red where more sellers locked in profits combined with the shortists trying to bring the price down which contributed to this sell down now. To find such a stock again is tough with this market condition and to buy back this counter again, you will need to wait for a long bar down first before taking a trade on the long side. It's always a stock in my watchlist. It's just a matter of timing and what price I re enter again.
Ronald K - Market Psychologist - A Stock Market Opportunist
