Boy, this has not been a good week, at all! Thursday gave us a glimmer of hope, but in looking at the chart, the downtrend didn’t come close to being broken. Then Friday just confirmed the misery.
Right now the bears are feasting. And they’ll keep feasting until – at a minimum – the downtrend line is broken.
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One good thing about being a technician is that you don’t have to follow the story about a stock. Instead, just follow what everyone else is doing and you take advantage of the “wisdom of the crowds.” That’s the case with Herbalife (NYSE:HLF), and regardless of how you feel about the company, the stock looks like it’s headed back to the $50s.
One good thing about this selloff is that it lets some of the favorites come back to a low-risk buying area. Apple (NASDAQ:AAPL) qualifies, and you might pull the trigger on Monday. I’d have a stop just under support, though.
Back next week with plenty of food. Uncertain, however, if I’ll be feeding a bull or a bear.