Tuesday, May 01, 2012

Confirming Indicator

People often ask me if there's any sort of confirming indicator that helps me know if it's okay to wade into the fray. There is...



When I see a big spike in volume on a heavy down day, I know the stocks I want to buy have likely undergone a change in sentiment amongst the retail investors who are jettisoning them.



This means they are primed for a reversal.