Saturday, April 4, 2026 
Reader Query: APWR
Reader query: “Any thoughts on APWR?”
Upon pulling the chart, I initially see that the stock is in a downtrend, so it is bearish. I am biased to the long side at the moment, so my first inclination is to pass–not go long or short it.
APWR
However, though the trend in APWR is down, the trend can change—it can turn up. Every new trend starts with a countertrend. The stock is going down now (the trend is down), but it won’t go down in a straight line. There will be countertrend moves within it’s overall downtrend. At some point, one of those countertrend moves will be a bottom, and the beginning of the new trend–an uptrend.
It is possible that the formation of APWR fits this countertrend criteria. So before I buy, I will wait for buying. In other words, I need to see some demand off of this bottom. I need to see buying behavior before I “buy into” the behavior. One of the greatest rules of trading is a converse conversation:
“Don’t buy into selling; buy into buying. Don’t sell into buying; sell into selling.”
Write that down.
Studying the chart in zoom, I decide I will wait for the price to move outside of the regression channel, and when it does, I will buy. I’ll always use a stop, so I will set my initial stop under the bottom pivot (red line). Stops have saved my life several times. I am sure they will again.
APWR Countertrend Oil on canvas
Every new trend starts with a countertrend. The end of one thing is the beginning of another.
And the beat goes on.
wow…thanks a lot..didn’t think you’d respond with a whole post but i really appreciate it…still holding HL…trying to be patient but working my way with APWR…thanks!
Comment by A — April 12, 2010 @ 1:12 am
Great Insight Mr. V
Comment by Alex — April 12, 2010 @ 2:45 pm
[...] am paid to wait. -Vincent M. Vega The waiting is the hardest part. -Tom Petty In my prior post, I laid out the bullish case for APWR (A-Power Energy Generation Systems, Ltd). Two trading days have passed and I have not [...]
Pingback by APWR Update | Volatility News — April 14, 2010 @ 9:25 am
[...] one up to the minus side. Attempting to fade the existing downtrend in A Power Energy (APWR), I went long. I have now sold my stake, as the price action hit my [...]
Pingback by APWR Exit | Volatility News — May 5, 2010 @ 1:54 pm
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