The Patient Beat-Down

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I sometimes talk about patience when it comes to positions, irrespective of whether they are long or short. I wanted to offer an example below in the form of Gulfport Energy (GPOR). What’s intriguing about this is the size and clarity of the topping pattern. Everything above that horizontal line is a squeaky-clean top (this image was as the stock looked months ago).

As a follow-up, here’s what GPOR has done since then. The entire top isn’t shown here, but the horizontal is, so you can see what took place after its price failure. And, frankly, it has been going down pretty much every day since.

Sadly, I did not stick with this one. The reason is always the same – – “it’s already fallen so much!” And someone who bought AMZN in 2002 might have said in 2005 that he’s selling it since it’s gone so much higher.

My point is that large, well-formed patterns tend to produce lasting, high-quality moves. The trick is to be able to wait them out and allow them to unfold fully.