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 |
Like what you read?
Let us help you make sense of these markets by signing up for our free Market Lab Reports:
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.