Frequently Asked Questions

Market Lab Report
Do you factor rumors and other news into your decision making process?

Q: I am pondering if and how the rumor news this weekend attributed by
Wall Street Journal plays into whether POT is a go-ahead as pocket
pivot buy?

What is your thought process in incorporating info like this into buy/
not buy/ sell relative to using charts and industry ascension as

Am I irrelevantly overthinking this one?


A: Once a stock is showing itself to be a strong fundamental leader, we prefer to use the price/volume action of the stock as our final guide. News and speculation can run rampant, but in the end, price/volume action on daily and weekly charts tell the facts of buying and selling pressure going on within the stock. Weekly charts are a good supplement because they filter out some of the minutiae and distortion that can occur on a day-to-day basis.

Published: Oct 11 2010