Pleasures of POT

Michelle B submits:

Estocastica described his trade in MCO yesterday. From noon to 2 P.M., MCO traded in a very tight price range which was essentially a bear flag. This bear flag inclined into the descending 15 minute 20 sma on low volume until shortly before 2 P.M. when the volume picked up a bit, but with no significant increase in price. Then at 2 P.M., it resumed its downtrend, with another leg down on good volume. Happily, Esto didn’t jump his stop and stayed with the trade, despite that annoyingly tight range it did for a couple of hours.

2 P.M. is one of those special times in the trading day. One of my mentors called it POT for Period Of Treachery. A stock’s price often headfakes into POT to only then go into the opposite direction. For some unfathomable reason, I would think that Esto will have no problem remembering POT!

BTW, WFMI, which Mike mentioned yesterday because of its premarket bullish action based on its buyout of OATS, did a very nice upleg, even nicer bull flag, and then a fantastic second upleg via a measured move.