The VIX is a contrary moving indicator, and is a staple to get in the habit of watching, but for our purposes we try to pick stocks that will not be affected by any reversals, and in this case the doldrums.
VIX
The Vix has broken it's downward trend line, signaling the spring ralley may have lost it's legs and in doing so our favourite hot pick PDM.TO has made a super dip that appears to be getting it's legs back for a reaction bounce.
WE can't predict anything, so we wait for the market to tell us what it will do, but we think the market is going to bounce PDN soon, and we are very concerned about the the possibility that the doldrums, and the very important heavy resistance at $4.50 will give us some ranging motion before an eventual breakout. If we catch the bounce, we are looking for a swing at each end of the range. In some of our studies, the major reversal has not appeared yet, so we may face a consolidation of significance if we move to a ranging price topping at 4.80ish, be cautious.
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