Market Talk with Piranha is currently moving to its new home at The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Tuesday, January 04, 2005

Red Flags

…We have a service here that makes members aware of common red flags to avoid or stocks that are topping or making a major reversal. NGPS has been one of the biggest winners at MSW over the past 12 month while doubling in the past month on above average volume. In the past few weeks, I warned about a few red flags with NGPS even as it made new highs and moved to the #2 All-Star Stock of 2004.

Today NGPS – $35.91, down 23% on largest daily volume ever.
I warned all members with multiple red flag “text” over the past few weeks that NGPS was in overbought territory. I hope anyone that owns or owned NGPS wasn’t caught off guard today.
Post from 12/31/04 Weekly screen: “NGPS – 44.39, closed in lower half – red flag
Post from 12/20/04 Daily screen: “NGPS – 34.41, entering overbought levels.”

As time moves on, all members of this community will be aware of the initial red flags that will allow you to lock in gains or be ready to sell when the proper time approaches. You won’t be caught off-guard in most instances. No one is perfect but we can all lower our risk with a solid set of rules.

For more analysis on today’s market, please login to our daily screens and review the stocks making the strongest moves today.



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