I guess we should all know better by now, that Friday was simply the 382nd one-hit wonder dangled in front of the bears. At this point, even a nuclear strike on a major city would cause only a one-day dip.
There are occasions when technical analysis still works, however, so I thought I'd do a post about a recent instance of this. It's a quiet day, so this might be my only post until the close.
This is the kind of trendline break I really like to see; it has three steps:
(a) the red arrow is the initial break of the ascending trendline;
(b) the green arrow marks the point where the price has retraced precisely to the underside of the former support trendline; this is the perfect shorting point;
(c) lastly, for good measure, the blue arrow marks the point where a lower low is made; the trend is changed, and it's down, down, down for the stock
In normal markets, this kind of thing works all the time. I guess HMIN somehow got away with behaving itself As God Intended.
