chart JCG

[lori]

Take a look at this one. JCG. it looks good to go to possibly $53-$54, if it keeps up its momentum. it made a new high today. Im thinking $49-$50 would be a good entry...maybe.

[FibMaster]

I like JCG for a potential run up to $55 to $57, but when to enter? You are a longer-term trader, so you're looking at the daily chart for entry. Since I prefer to buy on pull-backs, I would have to wait for a decent retracement on that daily chart. For me to remain bullish, that retracement would have to support above the $48 level, or the chart turns bearish.

FYI, if you look at the weekly chart (attached), you will see that the current rally is a reaction to the severe pull-back in 2007. This is a "dead cat bounce". If the current rally doesn't exceed the high of July 2007, then JCG could be a great chart for shorting! Notice the weekly TRSI indicator rising to resistance near the 60 level?

So be careful of this one, you don't want to be long if it can't sustain a decent rally above $57

[lori]

wow this did turn into a great shorting chart! what is a dead-cat bounce anyway?

[Alice]

A dead cat bounce is a term used by traders in the finance industry to describe a pattern wherein a moderate rise in the price of a stock follows a spectacular fall, with the connotation that the rise does not indicate improving circumstances. It is derived from the notion that "even a dead cat will bounce if it falls from a great height".
The phrase has been used on the trading floors for many years. However the earliest recorded use of the phrase dates from 1985 when the Singaporean and Malaysian stock markets bounced back after a hard fall during the recession of that year. The Financial times reported a stock broker as saying the market rise was a "dead cat bounce".
The reasons for such a bounce can be technical - investors may have standing orders to buy shorted stocks if they fall below a certain level, to cover certain option positions, or for speculation. Since bounces often occur, investors buy into what they hope is the bottom of the market, expecting a bounce and thus make a quick profit. The very act of anticipating a bounce can create and magnify it.
A market rise after a sharp fall can only really be seen to be a "dead cat bounce" with the benefit of hindsight. If the stocks starts to fall again in the following days and weeks, then it is a true dead cat bounce. If the market picks up starts to climb again, it was not a bounce but a bottom.

-Wikepedia.

[FibMaster]

Since I prefer to buy on pull-backs, I would have to wait for a decent retracement on that daily chart. For me to remain bullish, that retracement would have to support above the $48 level, or the chart turns bearish.

This is a "dead cat bounce". If the current rally doesn't exceed the high of July 2007, then JCG could be a great chart for shorting! Notice the weekly TRSI indicator rising to resistance near the 60 level?

So be careful of this one, you don't want to be long if it can't sustain a decent rally above $57

Notice how waiting to buy a pullback kept you out of a bad trade?

As Cathy posted, dead-cat bounce, it's an old trading phrase. It refers to a bounce reaction after a steep drop.