Trading volume is a very important and profitable indicator.
- Above average volume following a sharp correction signals a bottom is near.
- Above average volume following a sharp rally reflects distribution and signal an important top.
Now look at the chart of BRKB (click on the chart to enlarge it). The December spike in volume as BRKB moved sharply higher, following a protracted rally, was a reliable signal of a top.
$140 seems an important support level for BRKB. Furthermore, the rising 200dma suggests the main trend for the stock is still up.
More details in The Peter Dag Portfolio on www.peterdag.com
George Dagnino, PhD
Disclaimer. The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
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Learn how to manage your portfolio risk and sleep comfortably. Improve the certainty of returns by taking advantage of business cycle trends. Learn to use simple hedging strategies to minimize the volatility of your portfolio and protect it from downside losses.
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More details in The Peter Dag Portfolio on www.peterdag.com
George Dagnino, PhD
Editor
The Peter Dag Portfolio
Since 1977
The Peter Dag Portfolio
Since 1977
Disclaimer. The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
STRATEGIC INVESTING FOR UNCERTAIN TIMES.
Learn how to manage your portfolio risk and sleep comfortably. Improve the certainty of returns by taking advantage of business cycle trends. Learn to use simple hedging strategies to minimize the volatility of your portfolio and protect it from downside losses.
You will receive your user id to access 2 FREE issues – and all the previous ones - of The Peter Dag Portfolio. Email your request to info@peterdag.com. New subscribers, please.
FOLLOW ME ALSO ON TWITTER @GEORGEDAGNINO FOR MY LATEST VIEWS.
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