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PPR - General Thoughts on Pocket Pivots Currently

Attesting to the fact that most traders and investors just can't go a single day without "something to do," we have received a number of emails pointing out pocket pivots and wondering why we are not issuing these in alerts. The fact is that we don't see the risk/reward equation in this market, given recent action in the indexes as well as leading stocks, as being favorable for the implementation of pocket pivots. We see everything in the market, for the most part, and even if we see stocks like BIDU, BORN, GMCR or some $8 solar stock showing a pocket pivot type of signature we don't see any reason to lead anyone over a cliff here. We prefer to choose the most optimal window within which to operate at any given time.

Sometimes the best course of action is none at all. Jesse Livermore pointed out that "There have been many times when I, like many other speculators, have not had the patience to await the sure thing. I wanted to have an interest at all times. You may say, 'With all your experience, why did you allow yourself to do so?' The answer to that is that I am human and subject to human weakness." In our human weakness we find it hard to be like the man who came off the mountain every so often to place his trades and whom Livermore quotes in "Reminiscences of a Stock Operator." This man made speculation a business, and his most astute observation, in our view, is that "Real movements do not end the day they start."

Hence in uncertain environments, pocket pivots and pivots of any type will be less reliable. If we alert members to a stock showing a pocket pivot during such times, the stock will have to be nearly flawless. We might be more comfortable picking up pocket pivots if the market were already in a period of consolidation, similar to the end of August, when pocket pivots are often early clues of a market about to turn to the upside as they were in the August/September timeframe.

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. ©2022 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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