Technical patterns

I like to watch charts of stock prices with their trading volume. Trading volume has considerable information on the outlook of the stocks.

Example. I was reviewing the chart of IYT (the transportation ETF) since last September. I noticed two well defined patterns. Strong volume when IYT was around $90. The other strong volume days took place toward the end of January. This is a very important pattern.

Why? Because you see above average trading volume at bottoms and after a strong rally as IYT had in the past few months.

George Dagnino, PhD Editor,
The Peter Dag Portfolio.
Since 1977
2009 Market Timer of the Year by Timer Digest
Portfolio manager

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