correct ideas
“Be Fearful When Others Are Greedy and GreedyWhen Others Are Fearful”- Warren, you know his last name
- Hypothesis: In the days following a MAJOR decline (>50%), a stock will reverse trend and form a (temporary) uptrend
- Why: Once all the bears (likely institutional investors, in this instance) have gotten out of the market, the bulls can step back in to drive up the price per share
- It happened with GALE, it is reasonable to assume that it could happen in the future
- Results: Bingo.(Click the "Play" button on the chart below to see for yourself.)
- Conclusion: The hypothesis is confirmed true. Price action shot up after consolidation at the lower price.
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