 |
FloatCharts.com
Click here! |
September 9, 2006
|
 |
|
|
During the week ending Friday September 1st, Holly Corp. moved lower on heavy volume and made a float turnover at a top formation when it broke below its lower float channel line. It briefly tried to move higher but ran into resistance and continued moving lower. This is the first time in over 6 years (!) that Holly Corp. has moved below its lower float channel line and had this type of price, volume and float turnover breakdown action! Feel free to share this stock report with others. Float Turnover Theory (The Basics) - When a company comes public it issues shares outstanding. The management always holds some percentage of these shares. What's left over and is sold to the public, is called the float or floating supply. Float Charts are all about tracking the floating supply in an attempt to see where The Smart Money is buying and selling. The gray rectangle on a Float Chart is known as a Float Turnover and changes from day to day much like a moving average. It shows the least amount of time it takes for the entire float to change hands once. The total amount of shares traded during the float turnover equals the floating supply. We simply add up the number of shares that traded over a given time frame until it equals a stock's publicly accessible float number. Imagine a stock's price that goes sideways for one float turnover right at the top of an uptrend and then breaks to the downside. The idea here is that during the sideways move new ownership (The DUMB Money) has bought the float hoping that the price will move higher. Once a large percentage of the float has been distributed and there are no more buyers then prices move lower due to lack of demand.
Will Holly Corp Move
Lower From Here? A float turnover breakdown is not necessarily a sell signal. It's an early sign that the long term trend has ended and that it will most likely move lower. Whenever any stock makes a long term top, turns around and heads lower it always leaves a float turnover right at the top. What this means is that Float Charts have predictive value in determining when long term trends in price have changed.
STUDY THE
CHART ABOVE |
 |
|
|
INFO ON OUR PREMIER FLOAT CHARTS WEB SITE Want to find stocks like those above? Check Out Our Web Site and Consider subscribing to www.FloatCharts.com. We track Float Turnovers on over 7000 stocks and scan the market for ABC Float Set-Ups, Breakouts and Breakdowns that are poised to make big gains. Our Float Charts Central site is the world's premier site for Float Charts and Float Analysis. We also send out Stock Alerts and a Weekly Newsletter. Check us out! At www.FloatCharts.com we're always on the lookout for trading opportunities. We currently have a Silver ($30 a month) and a Gold ($75 a month) Package. Visit our homepage and see the results of some recent stock picks (near the bottom). You'll be amazed at the power of Float Charts and the returns our stock picks can generate. Our stock picks are based on the ideas found in Steve's book Float Analysis, Powerful Technical Indicators Using Price and Volume (Wiley, 2002). The book's former title was The Precision Profit Float Indicator (Marketplace Books, 2000). |
|
|
|
|
 |
|
