Shorting the Triple-Dip Rally
Last week, we used a combination of technical and fundamental analysis to analyze Apple (AAPL). Too often, we eschew one discipline in favor of the other, instead of finding ways to combine them effectively. That same theme of combined disciplines can be applied to any stock, commodity or currency. Right now, a similar situation is unfolding in the latter, specifically involving the British pound.
The pound began 2013 auspiciously, reaching a 16-month high on the first trading day of the year, but those gains were short lived. By the close of trading that day, the first sign of trouble appeared in the form of a massive shooting-star candle (shaded blue), indicating that a significant intraday reversal had occurred. The shooting star formed at the major resistance point of 1.63 (black arrows)....516 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
