Wednesday, August 18, 2010

Tuesday, August 17, 2010

Educational stocks got SCHOOLED!

Educational stocks were down some 20% - 40% in just one and a half week. The sell off was completely driven by series of negative new such as falling loan repayment rates, possible changes in lending standards..etc. However, the sell-off seen overdone and some of these names might actually capitulated(Thanks to the massive volume sell-off driven by fear) and are setting up for a snap back rally.

Signs of reversal patterns/signals.
1) Stocks that are trading completely out of the lower BB(Bollinger Bands).
2) Red-Hollow candles
3) Hammer candles

Below are some potential setups.

LINC


CPLA


DV


EDMC


COCO


WPO


CECO

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