Frequently Asked Questions

Pocket Pivot Review / Buyable Gap Ups
Why are some stocks that issue pocket pivots or gap ups more difficult to handle than others that issue the same?

Q: Why are some stocks more difficult to handle? For example, ARUN ( [3/4/11] and [2/18/11]) and CLF [2/14/11] both flash pocket pivots or buyable gap ups, but then the stocks don't show upward momentum. In fact, they appear to get sold heavily.

A: ARUN had difficulty after both 2/18/11 and 3/4/11 because the general market sold off heavily. Action of stocks, no matter how strong the stock is, is contextual to the general market. That ARUN did not sell off as hard as the general market speaks well of ARUN. CLF looked okay after its pocket pivot but then, again, the general market sold off from 2/22/11 onward.

Published: Mar 22 2011, Modified: Apr 11 2012