|
Welcome from me to all our Safety in the Market traders to this month’s dedicated newsletter. Well last month I spoke about waiting for the pullback and the last half of October delivered. For those who are part of the Platinum Fast-track Program I have been talking about the virtues of 6 November as a pressure date. It looks for now it may have come in as a low when at first I was looking for a top. The market has sprung back into life these past few days and in particular AMP in the last two days (at the time of writing, 10 November).
Now look, I’ll be the first to admit that after a series of successes on AMP, last month it pulled the wool over our eyes. One certainly has to be prepared to not always be right in the market, that’s just a home truth. It’s your ability to re-evaluate and adjust that makes all the difference in the times you are wrong. That’s what I’ve got to share with you this month, the re-evaluation and the opportunity that perhaps presents.
I really do hope that you are enjoying this series of articles. Through both the successes and what now comes as our first chance to live the reality of accepting an initial view needs adjustment and then we go forth. We really have had a chance to watch the movement in a stock unfold over more than 6 months now. I know I’ve enjoyed it.
Chart 1 is the most up to date bar chart of AMP that I can provide. During this series of articles I have been talking to you about the ability to combine perspectives and see the ‘ABC’ patterns in the bigger picture. I think when you feel you can confidently do this your future seems far more secure. While the element of ‘Time’ is something we use very sparingly in this forum (as opposed to Platinum Newsletters) this week I have just a taste for you. For now, take a quick look at Chart 1.
Chart 1 – AMP Daily Bar Chart – Combining Perspectives
click chart to enlarge
Looking back to our first ‘Big Picture ABC’ we had a Point A of $3.52 (10 March), Point B of $5.57 (7 May) and Point C of $4.55 (8 July). The 8 July low was a beautiful example of a 50% pullback and was 121 days from the 10 March low.
Moving forward, the early October low proved to be a false start. Following the 15 October top prices sold off heavily until early November. Looking at a new ‘Big Picture ABC’ we have a Point of $4.55, Point B of $6.97 (15 October) and Point C of $5.66 (9 November). The 50% retracement point between our new Point A and B is $5.76, that’s close enough for me to $5.66, our November low. Add to this that the time between the 8 July low and our new ‘Big Picture Point C’ is 123 days (close enough to our previous 121 days between Point A and Point C) this could be quite an example of history repeating don’t you think?
The last point to back this up is the volume. I have circled the volume bars for 9 and 10 November. They are massive compared to anything we’ve seen for many, many months. That’s pretty red hot considering all the other time and price elements we have shaping up here now.
At the very least I hope you watch the stock closely and see how things pan out from here. Nothing is a guarantee but I have been sharing with you how I have seen things as movements in AMP have unfolded over quite a few months now. Even though I’ve been at this for years now, things like this still give me a buzz and I trust you too have enjoyed our ‘AMP Journey’.
Until next time...
Noel Campbell
Professional Derivatives Trader
P.S. You can now look at the articles from the March low as educational series and I urge you to print them all out and review as an unfolding story.
|