AIG: Clears 10 Year Low
May 29, 2008 12:05 AM
AIG cleared the 10 year low today and volume spiked. it looked like $34.60 was the last gasp hope for the stock to reverse as it was the October 1998 low. Yes, 1998. If you review my Gap Trading lesson page, you would have known to avoid this stock. My rule said on this stock that if $42.12 could not clear to the upside, it was going LOWER. And it has, exactly has predicted. I know all these “numbers” seem like a bunch of nonsense to many, and perhaps it is, but that is how the market works, like it or not.
As I have mentioned many times, isn’t $42.00 a better “deal” and cheaper than $42.12? Yes. Does it matter? No. If the stock could not clear $42.12 it is going lower. Period.
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