PPR - FIO a V-Shaped Pocket Pivot - an Exception to the Rule?

Published : November 3 2011 at 14:10 ET

We've been nursing a position along in FIO this morning, and it is not without its difficulties as the stock tends to be volatile. While the buyable gap-up this morning is out the window given that the daily chart now shows that there is no gap in the formation thanks to the stock turning red earlier in the day, today's action could simply be a standard base breakout from a cup formation without a handle. This is also supported somewhat by the fact that the stock's action today qualifies as a pocket pivot, and given FIO's volatile nature one might consider the v-shaped position a possible exception to the rule. In any case, if the action remains positive in FIO than it is possible that a decent upside move is in the cards from here if it doesn't reverse and fail on us. We are already long this thing, and all we can say is that if you choose to play FIO here then fasten your seatbelts.

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