A lot of research has been done around crowd compliance. Compliance in the stock market can lead to losses. The attached artile that accompanies this blog post briefly looks at just this very thing.
People have been sucked into a downtrend in UGL on the ASX for example, since April 2011. Another great example is OZL on the ASX. We called a downside target in that stock of $3 way back when the stock was $6 (we did this in an old issue of our old Technical Report Newsletter. This newsletter has now been replaced with a free fortnightly newsletter from our sister blog).
Other stocks such as AGO which have recently tried to breakout of the downtrend, seem to have failed according to the technical indicators we use. Therefore we can imagine many people holding onto AGO stock as it collapses below 80 cents in the weeks ahead.
Please download the article here.
People have been sucked into a downtrend in UGL on the ASX for example, since April 2011. Another great example is OZL on the ASX. We called a downside target in that stock of $3 way back when the stock was $6 (we did this in an old issue of our old Technical Report Newsletter. This newsletter has now been replaced with a free fortnightly newsletter from our sister blog).
Other stocks such as AGO which have recently tried to breakout of the downtrend, seem to have failed according to the technical indicators we use. Therefore we can imagine many people holding onto AGO stock as it collapses below 80 cents in the weeks ahead.
Please download the article here.
