The Daily Breakout: JNJ
November 13, 2007 – 10:37 pm
The current market environment is limiting the number of successful Cup with Handle breakouts. As conditions improve, the patterns will noticeably improve.
 This evening’s installment is Johnson and Johnson.
 Note the RSI(2) is near 98. Backtesting of over 8 million trades found that stocks with an RSI(2) greater than 98 typically underperform over the next 5 days. However, notice that JNJ had an RSI(2) >98 for the better part of September.
About time.
You must have been trading while working or something.
November 13th, 2007 at 11:21 pmNice find. I love the cup & handle. This is a good pick Woody, really.
November 13th, 2007 at 11:46 pmI prefer rounded bottoms but a nice cup n’ handle works too.
November 13th, 2007 at 11:49 pmSorry for the delay-I have yet another puking child. This makes round 2, twice in 1 week, for this one.
Cajun- stay tuned. They’ll get even better.
NewE- I love me a nice, round bottom.
November 14th, 2007 at 12:07 amSympathize. My entire brood was sick last week.
November 14th, 2007 at 12:57 amI like rsi 2 as a bottom indicator better than a top for the reason you supplied. 0-10.
November 14th, 2007 at 1:10 am