However stocks that take some hits, appear to be left to humans to buy and are hence a trickier proposition. Humans have emotions and such; unlike the mindless buying by the computers. The reason this matters is I am thinking about buying Cummins (CMI) today (I suppose it can replace BUCY) but its chart looks very similar to Bucryus (BUCY) from last week. Both have a reversal on a big red 'candle'. So if it's left to human devices now that the "straight up momentum" is over, is there actual demand? Not sure but one I will watch closely as I try to figure out how a market dominated by automatic trading continues to evolve.
As for BUCY it was entered last week @ $68.70 with the caveat that if the 50 day moving average was broken I'd be quickly out. That happened today @ $66.72 as I was hit by the worst price of the day in this morning's quick selloff pre POMO. That price executed around 9:45 AM. Once the stop losses were collected the stock shot up to $68.50 (+2.7%) within 15 minutes, just after 10 AM. To which I say, nicely played market makers.
No position
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