The other option I see in the daily charts of some of the sexy leading stuff is based on a potential pattern. Now, pattern recognition is another way of saying TA hocus pocus, as in let me enthrall you with the mystical things I see in my charts. In other words, patterns are a side show and should not be taken overly seriously, much like daily or in-day candlestick analysis (in my opinion). They can be please or scary to look at, and they often work out. But I consider them less important than trends, support, resistance, etc.
Using my current holding CRSP as an example, I am seeing this incomplete pattern showing up on several former high flying stocks that got hammered. I bought the likes of CRSP and CHWY on the prospect of a big bounce at least. So let’s watch the bear flags in Semi and Tech in the previous update. If they break down, they break down. But this is the other side of the coin for some of the beat downs.
