In the weekend IBD edition (Aug 7, 2006), the investor education section takes a close look at the breakdown of a market leader, Goldcorp (GG).
I’m posting this because of the similarity the chart has with the ATI chart, which I just shorted. Notice the bearish divergence or wedging indicated by point 3.
Here’s a quote from the article, “When leading stocks start breaking down after huge run-ups, that often signals a shift in market direction.”
I think ATI is a much better short because it is more dependent on the economy. With inflation still on the rise, gold might resume its climb and bring GG right along with it.
Good luck with your short! I hope you make lots of money $$ =) Miss you…xoxoxo
Thanks Becky. When are you going to buy/sell something? Better yet, why don’t you give me your money to manage? LOL!