Monday, May 15, 2006

Why We Don't Chase Parabolic Stock Moves-Part 1

Having some posting problems today. In part 2 is a chart of the largest point losers in the market today. Most are commodity related. Many have lost a similar amount on a dollar and percentage basis since Thursday of last week. Commodity and commodity related stocks have been the media and investment darlings since the beginning of the year. There is an investment case to be made for these kind of companies. But chasing parabolic moves often ends badly.
You can double-click on the chart below to enlarge it.