Friday, September 05, 2008
In this vicious hedge fund unwind liquidation phase of the bear market, even stocks I thought might be enticing on a pullback have gone through my pullback numbers like a hot knife through butter. For example AMED is now around 48 and AFAM has pulled all the way back to its 50 day MA around 35. In the case of AMED it is now almost 30% off its 52 wk high, and AFAM is now in the middle of a 21% correction. Hence the dangers of trying to catch a falling knife. And a great lesson for those who try and play upside momemtum in a bear market. DON'T try this at home!