Choosing the Wrong Horse…Or Snowmobile

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Choosing the Wrong Horse…Or Snowmobile

I spend a lot of time working through scans and charts to find trade opportunities.  Often there are more than I can conceivably take positions in.  This can get even toughers when you have more than one chart in a space that looks ready to go.  This type of clustering is another sign of support for the sector you are looking at which is a good sign, but it also makes choosing difficult.  In reviewing my holdings and other opportunities I passed on, two charts that jumped out were $PII Polaris and $ACAT Arctic Cat. This was one of those times I chose the wrong horse! Looking at the charts below the performance difference is stark.

$PII was just breaking a sloped trend line.  It was a nice set up that looked to move higher. At the time, I looked at the $ACAT chart as a better opportunity I preferred the pattern it was showing.

$ACAT was full of tells with a Cup n Handle with a big island in the middle.  It also was sporting a RSI Positive Reversal inside the tight handle.  my post walked you through every thing I saw here.  I took the position a few days later.  Unfortunately, I am sure my writing the post added to my bias when deciding which name to trade.  As of Friday, my trade is still on and I am sticking by the plan as the stop has not been hit.  That does not make me feel any better about making the wrong choice after watching both for a while, but that is part of  it.  No need to get down about it.  All I can do now is look back and make a determination as to if there is something I missed that would change my decision next time, because there is always a next time and it will come sooner than you think.

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(All market data above are derived from, Esignal, and Reutersdatalink)

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About Author


is a Chartered Market Technician (CMT) and Certified Financial Planner (CFPr) in Greensboro Georgia (Outside Atlanta). Founding partner of Barber Lackey Financial Group, LLC, a Registered Investment Advisor. However, this blog is not affiliated with BLFG and does not make recommendations to buy sell or hold any securities.