Warning Signs a Stock May Be in Trouble
★ SUMMARY ★
There are warning signs and red flags that a stock may be in trouble.
Heavy Institutional Selling
This means that a huge volume is coming in to the downside.
You can see in the chart below that volume is very heavy (to the downside) and the stock is moving lower. The volume is coming in huge and heavy and bringing the stock lower.
This shows that a stock is in trouble. You need to be mindful of your stops – either get out quickly or be prepared to short the stock…
Be very cautious when you start seeing these large volume spikes and the stock is moving lower.
Huge Run in the Stock
A huge run in the stock is the second reason a stock could be in trouble…
Be really cautious if you see a stock flying high. Why would a stock be in trouble if it’s moving really high, really fast?
There’s always going to be a pullback eventually. Even the big companies who explode and have fantastic growth eventually retrace and pullback.
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