Fool’s gold. Chinese stocks.

Posted on Jun 21, 2010 by in Letters

Charts like this inflict us with incredible ennui.  It looks like a breakout, with a gap and volume and the breakout bar is a black candle that might be interpreted as a reversal day.  Spare us the grief.  But, like Charlies Brown and the football we say, OK do it to us and we buy it.  We do this because we can always sell it if it turns out to be fool's gold.  Which it may.  We really don't think that a major breakout is occurring, but you have to have some consistency in your trading, and that requires us to take the signal.

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