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  • indian_cycle_buyer indian_cycle_buyer Jul 29, 2005 10:23 PM Flag

    Closing the gap.

    Hey General,

    Have you pulled a Westy on us? "Light at the end of the tunnel?" Price went up, as you predicted 6/26, but it's lower now, five weeks later. Time to retreat?

    ICB

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    • i_c_b, the General's answer to your question, << Time to retreat? >> would have to be, "It depends."

      What it "depends" on, is whether the reader is a short-term oriented trader (which the General is NOT), or a long-term oriented investor (which the General IS).

      If the reader is short-term oriented, then the General still sees "technical" weakness in its recent chart behavior, which is not surprising given that its Commercial Services-Security Safety (CS-S/S) industry group is currently ranked 141st out of 197 groupings.

      Converted to a 'letter'-ranking rather than a numerical one, IBD calls that a "D+". The General thinks that that's somewhat 'generous' on IBD's part. He'd call it a "D," bordering on the cusp of a "D-".

      3 months ago, the CS-S/S group ranked 74th out of 197 groupings (a "B-") and 6 months ago it commanded the 28th ranking (an "A-" on the cusp of an "A").

      So its industry grouping has been declining in market favor over the past half-year. Nothing like that ever happens in the stock market, as we all know. Today's heroes never become tomorrow's bums and vice-versa.

      If one looks at CXW's long-term chart's trend since Ferguson has been at the helm, one sees that, while there have been periods of decline and consolidation, some lasting as long as a year,
      there are still viable long-term UPTREND lines, each succeeding one being greater in positive slope than its proximate predecessor.

      The General has not taken the calc'ing time to present them here, but if anyone's interested, he might do that (schedule permitting).

      The "revelation" that the General's prediction was correct some time ago now puts him in a quandry. He can't remember what brand of Ouija board wax he was usin' at the time.

 
CXW
34.91-0.33(-0.94%)May 26 4:08 PMEDT