This sort of statement indicates a misunderstanding of pocket pivots, as I see it. Pocket pivots are not guaranteed to work in all environments - common sense would dictate that they cannot "work" in a bear market or market correction as we are in now, but they haved worked well in leading stocks earlier in the year as well as in the latter part of this summer. They will likely, however, provide clues as to the next wave of potential leaders as we move into the potential latter stages of a market correction or a bear market since the leaders of any bull market phase often flash a number of pocket pivots that "don't work" right away yet are vital clues with respect to highlighting those stocks acting the strongest during a period where the market has been weak, and which have a high probability of being the leaders in the next bull phase. In other words, if one understands the usefulness of pocket pivots in all their aspects then one understands that they also can clue one into the next wave of new leaders. That is why we continue to make note of them and have explained in our morning Pre-Market Pulse commentary why we do so during a weak market environment. It is not a matter of throwing them out "willy-nilly" as you incorrectly conclude.
MLR - Q&A: The pocket pivots are not working as well as they should. I feel like they are thrown out willy nilly regardless of current market conditions.
|Published:||29 Oct 2012 14:50 ET|
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