Let me take a break from the mountain of excited emails flooding my inbox (actually, not a single person……..) and offer a bit of a life lesson with respect to charting. It has to do with this:
The above is Splunk (SPLK) which, at the end of 2022, I considered one of the greatest short setups in human history. You want to know how that worked out? I lost on every single attempt to trade it!
Some months ago, I gave up on it. The pattern was simply ruined. And recognizing when a pattern has failed is more important than spotting it in the first place. It was quite a fake-out on SPLK’s part (notice the dip below the pink zone) but that actually was the beginning of a series of higher highs and higher lows.
I was reminded of this when I noticed SPLK at the top of the Gainers list this morning. Let’s just say I’m glad I don’t touch this beast anymore, since it’s like Kryptonite for bears. My “champs” for 2023, SPLK and MDB, turned out to be complete turds, and although I probably was more patient with both of them than I should have been, I can at least say I raised the white flag on both of these monsters earlier this year to at least to stop the damage.