Huntin’ Pullbacks
August 26th, 2005 by BWV
This afternoon my father and Louis Prichard, both of Kentucky Bank fame, stopped by the trading desk after our lunch at the Lexington Club (which is an old school gentlemen’s club, not like this joint which came up on Google when I searched for a picture) 
As I know they’re more interested in longer-term holds, I showed them examples of my new favorite chart pattern for multi-week holds, referenced in my post regarding NTRI.
[Housekeeping note: I scalped out of that NTRI long position for a quick (overnight) 3% gain, and will look to reload it early next week — hopefully down 4-5% from current levels, but possibly even above my sell price if I’m wrong about the “imminent” pullback.]
While describing to Dad & Louis how the trend continuation pattern played out in the FORD chart (a cellphone accessories company, not automotive) back in May, I couldn’t help but notice that the stock could well be setting up a similar pattern once again! At this point, FORD is still in a short-term downtrend, having yet to form anything resembling a recent higher low point. But.. this last little selloff has taken the stock right to the area of the two peaks in June. That area should serve as a level of support for FORD’s stock price.
If the market indicies, and the NASDAQ in particular, were not currently in such ugly pullbacks, I’d take the lower win% play (but with less $$ Risk) and buy FORD almost immediately rather than wait for a potential first higher low. In this situation, however, I’ll likely have to sit on my hands for a bit. Patience..
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