Why do some of the Stock Watch List selections immediately break down and activate the Stop Loss point?
Over the years, we have found a number of our Stock Watch List selections that exhibit “exhaustion highs.” These are stocks which by the time they reach the Strategic Investing filter requirements of A + 190 have already made their upward moves. In many cases, a careful review of the stock chart and the volume and other technical indicators will enable you to avoid taking a position in these stocks. However, in some cases, the exhaustion high will not be apparent and the Stop Loss point is necessary to protect your position.
