“I asked her name, she said blah…blah…blah…she wore 9/10 pants and a very big bra…”
O.K. I’m back…..
My “Any Of You” thread includes a stock ticker. MGIC Investment Corp, whose ticker is MTG. It is probably my favorite stock of the past two months.
It has formed a chart pattern called a cup and handle.
The “Cup and Handle” was first described by William O’Neill in his 1988 book “How to Make Money with Stocks. It is also the same William O’Neill whose name shows up on my caller ID when someone using his good name is pitching a free no obligation trial leading to a subscription to Investors’ Business Daily.
I need IBD like I need IBS. Just talk of Taco Bell makes that bowel irritable. Yet, yo quiero Taco Bell.
Maybe a nice soothing tea instead.
Anyway, the Cup and Handle represents a bullish continuation pattern.
After the handle is formed and hurries to the resistance line which is predicated by the tops of the shoulders as well as the head….ah “head” one of my favorite words…say it again “head” I will be back in a minute….O.K I’m back…the thrill for all chart watchers occurs “THE BREAKOUT”
Not the OXY 5 breakout where you have to cleanse properly like Jessica Simpson., this is the cash money breakout. Not cashmoney as in the rapper crew….this is DOLLARS AND CENTS….blue skies….no resistance type of breakout. This is what we wait for as we have nurtured the formation of the cup ourselves from early August till early December.
You are in a relationship with the cup.
You watch it go up and down. You tell it where to go.
You get mad at it when it goes down and you give it an “ATTABOY” when it goes back up.
As you get confirmation of the formation of the handle you realize you have fathered the cup to finality. You have led it down the preconceived path that was destined for your precious cup
Ah, what a proud PAPPA.
As MTG prepares to leave its nest and head for blue skies you realize the hard work it took to get to this point. How many ups and downs did it take to reach the end point? But you needed all the ups to realize the downs and all the downs to realize the ups. Without all this there would be no cup and the handle would have nothing to attach itself to, thus voiding the breakout.
No ups, no downs?
That means no handle and no breakout. All the ups and downs are IMPORTANT….they are VITAL…to complete one’s journey….one cannot be accomplished without the other….
It all boils down to that classic “WHAT GOES UP MUST COME DOWN” unless it has lasted for 4 hours then quickly call a doctor or in my case screw the doctor I am calling 1-800-…or maybe I should just screw the doctor if I am going there any way.
I think I am on to something here.
“You ….you got what I need but you say he’s just a friend…..yeah you say he’s just a friend…oh you…you got”
O.K. I’m back….
Life as a stock is no different than our lives when it comes to ups and downs. Both need the ups and the downs to form the end point. You just do not realize the relevance of the parts at the time of formation but it becomes crystal clear in the end.
As for MTG, I give you a personal thank you for the opportunity to watch you grow from a little $2.16 kid to a $3.78 teenager and looking forward to your $5.26 tenure as an adult.
PAPPA is proud but after $5.26 you are on your own as I need to nuture my other kids.
“The cats in the cradle and the silver spoon…..”
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Copyright 2011 TheAcsMan