WTF Chart of the Day: What’s Wrong With Jim Cramer’s Call Of Buying JCP?By on 2013 Sep 26 Thu 21:46:23
Jim Cramer on TheStreet,
ZeroHedge quotes his words with sarcastic comments,
that’s back on September 05, 2013.
People who fall for his argument and are now burnt should learn from this lesson.
His argument to buy JC Penny is not logical. It is not analytical. It is a form of logical fallacy called false authority. Do not fall for that ever again!
The fact that all these big shots mentioned by Cramer who has been buying the stock does not translate to high probability that the stock will go up. All it means is that they can afford to lose all those money.
Now, really going technical on the chart.
Blue up arrow marked the date Cramer’s call posted online.
1. Even a blind person would know JCP is heading for below $10 where 50% expansion of 1st quarter is (red line).
2. Pure quarterly STOPD levels in play as 1st quarter low was acting as resistance.
3. 3rd push down on the chart so far (orange lines).
4. If and only if JCP can zoom back above 1st quarter low and close (i.e. weekly close above $15), it still has 50% chance of going all the way to 100% expansion zone. That would be near $5.
5. Once JCP can close above 1st quarter bottom area on weekly basis, the 3 pushes pattern points to a recovery back to above $19 with $12 as support.
I think Jim really needs to brush up his chart reading skills.