RE: SVM is massively OVERSOLD-------
Check your Indicators and do the right thing ....... something about buying low and .......
My fav Indicator is the Commodity Channel Index (CCI) and it is at negative 265.01
Happy Hunting ~ M1DAS
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CCI is also my favorite, but as a volatility indicator it is best used for entries into sharp countertrend moves. Doesn't work too bad in sideways markets either, but it can be pretty bad in a trending market (down, in this case for SVM.) I look for -200, and it was already -220 Wednesday, with a gap below and major ma's and channels giving out. I"m speaking in the context of seeing people buying this before I posted to some extent.
Still, SVM actually makes money and, as I said, I think these breakdowns will likely be pattern failures as we base down in here. Looks like the stock gapped back up a bit at or near the open - very few prints in there. Not to often a stock bottoms with a '3 red crows' pattern, but there's a good trading zone back to 7.
The point is, the permabull analysts do the retail investor no service with their broad generalities and little to no emphasis on trade management. Most of them have been through all this a generation ago and were in at the start of this bull. Not so for most retailers, and buying stocks with a lot of potential downside, even zero, if you run into the likes of John Embry or some of the pump and dump newsletter goofs, is not something I would be casually telling somebody to do.
Some notes on CCI signals in the chart below. In breakdowns / persistent downtrends I'd look for entries more at gap downs, fib retracement areas , preferarably wide range bars into support that tail back up, along with confirmation elsewhere in the market.
