By Chip Anderson, StockCharts.com

Bouncing Off Bollinger Bands (MTXX)

How are your money management skills these days? Here's a real test for you:

Over the past 10 months, Matrixx Initiatives (MTXX) has been bouncing up and down between roughly $14 and $19. One of the first signals that the stock is about to start moving higher again has been when it penetrates its lower Bollinger Band (blue arrows). While extremely risky by themselves, those signals have often been confirmed by MACD [Moving Average Convergence/Divergence] Histogram crossovers within a couple of days (red arrows).

By practicing good money management skills (tight stops, well defined exits, etc.), agile traders may be able to take advantage of MTXX's recent history now that it has gone and done it again (green arrow). The rest of us can watch with interest to see if history will repeat.

Berkshire's "Flight to Safety" Breakouts (BRK/B)



Continuing to look for "leading" technical signals that pointed to the market's recent crash. It's always interesting to see how the country's "best" investor did. Warren Buffet's Berkshire Hathaway (BRK/A) had a couple of interesting jumps in its stock price during the period in question. Comparing the percentage performance of BRK/B to $SPX, we can see two big jumps in 2007 (chart above) and one jump in 2008 (chart below). Of course, not all jumps in BRK/B are signs of an impending crash - but these charts show that they shouldn't be ignored either.



About “Don’t Ignore These Charts!”: These are charts that StockCharts.com thinks are 'interesting' from a technical analysis perspective. These charts are presented for educational purposes only. StockCharts.com is not making any buy or sell recommendations here.

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