- Harlan Pyan - Registered Representative and Vice President of Investments with Source Capital Group (Member FINRA,SIPC)

1^st Thrusts to the Downside; do they really work?

In order to answer that question, today�s article will look back at a few of the names mentioned in my past articles. Over the past few weeks, I have been talking about technical analysis patterns commonly referred to as 1^st Thrusts Down. Hopefully by now you all have a good idea what they look like.

In the July 17, 2008 edition of my column (read here), I featured a few names that were developing similar to those patterns mentioned in that article. Below are a few "before and after" shots of those names; namely, Bucyrus International Inc. (BUCY), James River Coal Co. (JRCC), and Massey Energy Co. (MEE).

Before:

After:

Before:

After:

Before:

After:

In summary: Past performance does not guarantee future success and remember all trades do not turn out like this, so be aware. However, the point is to bring this to your attention for future reference as I am sure, at some point in the future, there will be another group, another sector, and another theme that will enter into a strong bull phase. When that happens (which is another story) at least you will have had a heads up in advance and have some idea as to what could potentially occur when the strong bull phase ends. The purpose of this article is to help identify certain technical sell signals market leaders exhibit near the end of their moves. This helps investors reduce emotion and lock in gains before the stock falls out of favor. That is why it is very important to know how to identify a �Change In Trend.� and make that process part of your trading plan.

NOTE: Its earnings season! We do NOT trade ahead of earnings, long or short. 50/50 odds are bad odds, and investors are best served by waiting for a time when the market offers us better odds.

Should you want to consider having a percentage of your overall investment portfolio managed in this fashion, feel free to contact me.

Past Performance is no guarantee of future success. The examples in this article are not to be considered as current buy or short sell recommendations! This is strictly for educational and informational purposes only! For input specific to your unique needs, please feel free to contact me directly at hpyan@sourcegrp.com or by calling me direct at 414-418-9796.

Comments contained in the body of this report are technical opinions only and are not necessarily those of Source Capital Group, Inc. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. Our firm, employees, and customers may effect transactions, including transactions contrary to any recommendation herein, or have positions in the securities mentioned herein or options with respect thereto. Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities. Source Capital Group, Inc. is a FINRA/SIPC member firm.