Class follow up - the pgl saga - Thu, 04 Mar 2004

the pgl saga

2 charts attached. Those who went on to do the Gann stuff, you will recall the pgl example we spoke of, and eventual buy on the Friday. The break occurred over past minor highs, then some news later in the day; my que to sell the following day. We gapped up nicely Monday, but alas Tuesday's action does actually make the sell look poorer. Trading rules are trading rules however. Sell on the news.

There have in past months been more than a few examples where stocks have continued higher even after the news. Perhaps a rule can be updated from time to time. So next time on such a gap up, perhaps one could set a exit price say three points (in this case cents) under the days open price, three cents under $2 in this instance, and hold for the next day's action if the the 197 does not break. (It's a big gap up on Tuesday - bloody thing)

Wed proves Tuesday's bar as an island reversal (form reading), a trader definitely wants to be out on such a bar. A stock rarely goes higher after that, for at least some weeks anyway. Note also the island reversal early last September. As an exercise, you might want to do a day count, try both trading days and calender days off both the island reversal days, and see what eventuates, if anything.

Shares on issue just 33 million, not a lot. Worth watching to see if latest top is exceeded at a later date.

Thanks once again to all who took part in recent classes, I look fwd to doing a further update class some time later in the year. Emails will continue when there is something worthwhile to point out.


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