MUX Daily Chart........... Always Keep the Big Pic

MUX Daily Chart........... Always Keep the Big Picture in Mind

For those of you that have been swing trading MUX with me over the last couple of years, MUX has been a great one as a Big Board profit machine. The recent decline which began in late Jan when the rising support line was broken, might have ended when investors decided that the horizontal support of May 2012 might be the bottom. Whether the 2.15 proves to be that bottom, who knows. But the reversal, for those that jumped in at the 2.15-2.20 level last week, saw a very sharp move to 2.81 or quick 25-30% gain. Not bad for a NYSE stock. I missed this move, but do know of four friends who did buy. A long term double bottom results in sharp technical bounces, and MUX is just one of many such opportunities. I like MUX as a company but the stock has been broken for months. The lesson is to get out quickly when support levels are breached and be patient on your entries. Falling Knife Catching is a dangerous financial sport. But entering at potential reversal points found on a chart can lead to very quick swing trades.